PMC-Sierra Inc. (Nasdaq: PMCS) is in talks to acquire Israeli fabless semiconductor company Wintegra Inc. for about $250 million.
Five months ago Wintregra, which is developing the WinPath chip for telecommunications equipment providers, completed an open prospectus for a Nasdaq IPO. The company wanted to raised $115 million at a market value of about $250 million. Four years ago the company failed in its IPO. Now it seems Wintegra is moving away from the idea of a public offering.
PMC-Sierra has a market cap of $1.7 billion but its share has lost 17% recently following a profit warning for the third quarter of 2010.
If the deal goes through this will not be the first time that PMC-Sierra has acquired an Israeli company. In 2006, PMC-Sierra acquired Herzliya-based Passave, a developer of system-on-chip semiconductor solutions for the Fiber To The Home (FTTH) access market, for $300 million.
Published by Globes, Israel business news - www.globes-online.com - on October 10, 2010
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