EX-99.1
2
a5091823ex99_1.txt
EXHIBIT 99.1
Exhibit 99.1
PMC-Sierra Completes Acquisition of Storage Semiconductor Business
from Avago Technologies
SANTA CLARA, Calif.--(BUSINESS WIRE)--March 1, 2006--PMC-Sierra,
Inc. (Nasdaq:PMCS), a leading provider of broadband communications and
storage semiconductors, today announced the completion of the
acquisition of the storage semiconductor business from Avago
Technologies for $425 million in cash. The final purchase price is
subject to an inventory adjustment. PMC-Sierra will also incur
significant acquisition-related costs, including one-time charges and
ongoing amortization related to the acquired business.
The acquisition of the storage semiconductor business strengthens
PMC-Sierra's position in the storage market and allows the Company to
provide more complete end-to-end enterprise storage silicon solutions.
The acquired business is a technology leader in Fibre Channel protocol
controllers with its Tachyon product line and is developing
next-generation controllers supporting Fibre Channel and
SAS/SATA/iSCSI storage systems as well as other storage-related
products.
"With the closing of this acquisition, PMC-Sierra now has a broad
storage semiconductor product line with more integrated end-to-end
solutions for our enterprise storage customers", said Bob Bailey,
chairman and chief executive officer of PMC-Sierra. "We have acquired
a highly skilled team and are moving quickly to integrate our
operating and development efforts so that we can provide customers
with innovative storage solutions while at the same time improving the
overall profitability of the acquired business".
Safe Harbor Statement
PMC-Sierra's forward-looking statements concerning the
strengthening of PMC-Sierra's storage position in the storage market,
speed and success of integration efforts and improvements in
profitability of the acquired business involve risks and
uncertainties. Actual results may differ from projections for varied
reasons, including changes in semiconductor market conditions and
demand for storage semiconductor products; the impact of competitive
products and pricing; technological and product development risks and
other risk factors relating to PMC-Sierra's business detailed in the
Company's Securities and Exchange Commission filings, as well as
PMC-Sierra's ability to integrate personnel, product planning and
development, manufacturing and information systems of the business
acquired with PMC-Sierra's operations, and PMC-Sierra's ability to
identify and benefit from cost synergies in the combined business.
PMC-Sierra does not undertake any obligation to update the
forward-looking statements.
About PMC-Sierra
PMC-Sierra(TM) is a leading provider of broadband communications
and storage semiconductors for enterprise, access, metro, storage,
wireless infrastructure, laser printers and customer premises
equipment. The company offers worldwide technical and sales support,
including a network of offices throughout North America, Europe and
Asia. The company is publicly traded on the Nasdaq Stock Market under
the PMCS symbol and is included in the S&P 500 Index. For more
information, visit www.pmc-sierra.com.
(C) Copyright PMC-Sierra, Inc. 2006. All rights reserved. PMC,
PMCS, PMC-Sierra, and "Thinking You can Build On" are trademarks of
PMC-Sierra, Inc. All other trademarks are the property of the
respective owners.
CONTACT: PMC-Sierra, Inc.
Alan Krock, 408-988-1204
or
David Climie, 408-988-8276
or
Susan Shaw, 408-988-8515

EX - 99 . 1 2 a5091823ex99 _ 1 . txt EXHIBIT 99 . 1 Exhibit 99 . 1 PMC - Sierra Completes Acquisition of Storage Semiconductor Business from Avago Technologies SANTA CLARA , Calif . -- ( BUSINESS WIRE ) -- March 1 , 2006 -- PMC - Sierra , Inc . ( Nasdaq : PMCS ) , a leading provider of broadband communications and storage semiconductors , today announced the completion of the acquisition of the storage semiconductor business from Avago Technologies for $ 425 million in cash . The final purchase price is subject to an inventory adjustment . PMC - Sierra will also incur significant acquisition - related costs , including one - time charges and ongoing amortization related to the acquired business . The acquisition of the storage semiconductor business strengthens PMC - Sierra 's position in the storage market and allows the Company to provide more complete end - to - end enterprise storage silicon solutions . The acquired business is a technology leader in Fibre Channel protocol controllers with its Tachyon product line and is developing next - generation controllers supporting Fibre Channel and SAS / SATA / iSCSI storage systems as well as other storage - related products . " With the closing of this acquisition , PMC - Sierra now has a broad storage semiconductor product line with more integrated end - to - end solutions for our enterprise storage customers " , said Bob Bailey , chairman and chief executive officer of PMC - Sierra . " We have acquired a highly skilled team and are moving quickly to integrate our operating and development efforts so that we can provide customers with innovative storage solutions while at the same time improving the overall profitability of the acquired business " . Safe Harbor Statement PMC - Sierra 's forward - looking statements concerning the strengthening of PMC - Sierra 's storage position in the storage market , speed and success of integration efforts and improvements in profitability of the acquired business involve risks and uncertainties . Actual results may differ from projections for varied reasons , including changes in semiconductor market conditions and demand for storage semiconductor products ; the impact of competitive products and pricing ; technological and product development risks and other risk factors relating to PMC - Sierra 's business detailed in the Company 's Securities and Exchange Commission filings , as well as PMC - Sierra 's ability to integrate personnel , product planning and development , manufacturing and information systems of the business acquired with PMC - Sierra 's operations , and PMC - Sierra 's ability to identify and benefit from cost synergies in the combined business . PMC - Sierra does not undertake any obligation to update the forward - looking statements . About PMC - Sierra PMC - Sierra ( TM ) is a leading provider of broadband communications and storage semiconductors for enterprise , access , metro , storage , wireless infrastructure , laser printers and customer premises equipment . The company offers worldwide technical and sales support , including a network of offices throughout North America , Europe and Asia . The company is publicly traded on the Nasdaq Stock Market under the PMCS symbol and is included in the S & P 500 Index . For more information , visit www.pmc-sierra.com . ( C ) Copyright PMC - Sierra , Inc . 2006 . All rights reserved . PMC , PMCS , PMC - Sierra , and " Thinking You can Build On " are trademarks of PMC - Sierra , Inc . All other trademarks are the property of the respective owners . CONTACT : PMC - Sierra , Inc . Alan Krock , 408 - 988 - 1204 or David Climie , 408 - 988 - 8276 or Susan Shaw , 408 - 988 - 8515
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