Integrated Device Technology and PLX Technology have announced that they have signed a definitive agreement pursuant to which IDT will acquire PLX for a total value of approximately US$330 million. IDT hopes to broaden its portfolio of data centre interconnects, which are gaining importance in the era of cloud computing, and will also get various switches, bridges, controllers and other products widely used across the industry.

"The proposed acquisition of PLX Technology represents an exciting expansion of IDT’s core serial switching and interface business. Our two companies have complementary product sets, technologies and customer bases, and we share a focus on delivering the highest-performance system-level interconnect solutions for data centers and other applications. IDT and its shareholders will benefit from the top-line contribution of our enhanced product portfolio as well as the ncreased profitability provided through the added scale and expanded operating margin. This transaction is aligned with our long-term strategy of expanding our core businesses through organic growth and acquisitions," said Ted Tewksbury, president and chief executive officer at IDT.

Source: X Bit