Applied Micro to Buy IBM Product Line
From Bloomberg News
Chip maker Applied Micro Circuits Corp. agreed to buy IBM Corp.’s PowerPRS Switch Fabric product line for $50 million to add to its line of chips for network access.
About $3 million of the price is for a French unit that is subject to legal requirements, the companies said.
IBM, based in Armonk, N.Y., will manufacture the PowerPRS line for San Diego-based Applied Micro as part of its foundry business.
The line will expand Applied Micro’s switching solutions for the metro, wireless and SAN markets.
Applied Micro shares rose 31 cents to $5.16 on Nasdaq.
