Vitesse Semiconductor said it will acquire Cicada Semiconductor, thereby formalizing a partnership which has seen Vitesse market its LAN products along with Cicada's gigabit copper transceivers. Vitesse said it will pay about $66 million for Cicada.
Vitesse reported $156.4 million in revenue in its most recent fiscal year ending Sept. 30. Cicada is a private company. It has about 55 employees and its head count will be reduced to 40 after the acquisition is consummated early next year. Vitesse said it expects to add $10 million in revenue from the acquisition.
In a statement, Vitesse's Chief Executive Officer Lou Tomasetta said: "We expect this acquisition to double our revenues in the LAN switch market and to position us to gain share as the market embraces gigabit switch products."
Vitesse manufactures integrated circuits for the communications industry and has been expanding its business into the LAN market. The acquisition will expand Vitesse's sales in LAN switches.