Tundra Semiconductor Signs Product Acquisition Agreement
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Tundra Announces First Step in Smart Interconnect Solutions Strategy
OTTAWA, Aug. 16 -- Tundra Semiconductor Corporation (TSX:TUN), a leader in System Interconnect, signed an agreement today to acquire a new product from a leading global solutions and engineering services provider.
The agreement is a significant first step in executing Tundra's previously announced smart interconnect solutions strategy. This product represents a new product line and new market opportunity for Tundra. Based on strong I/O management experience, Tundra intends to use its existing design teams to develop future products in this new product line and in the broader smart interconnect solutions product portfolio.
"We are excited to announce this major milestone today. The acquisition of this highly competitive product is a positive step forward for Tundra and strongly positions the Company for future growth," said Daniel Hoste, President and Chief Executive Officer, Tundra Semiconductor. "Tundra's new product strategy will deliver intelligent interconnect products, to provide our customers with a competitive edge in their system designs where performance depends more and more on the I/O and interconnect architecture solutions," continued Hoste.
Tundra will acquire the product for a total purchase price of $15.4 million USD, with payments impacting the next 3 fiscal years. Tundra expects revenue associated with this product acquisition to begin to impact fiscal year results in 2010 and expects that lifetime revenue will represent approximately 8 to 12 times the total investment cost.
About Tundra
Tundra Semiconductor Corporation (TSX:TUN) supplies the world's leading communications, computing and storage companies with smart System Interconnect products, intellectual property (IP) and design services backed by world-class customer service and technical support. Tundra's track record of product leadership includes over a decade of bridges and switches enabling key industry standards: RapidIO(R), PCI, PCI-X, PCI Express®, PowerPC®, VME, HyperTransport(TM), Interlaken, and SPI4.2. Tundra's products deliver high functional quality and simplified board design and layout, with specific focus on system level signal integrity. Tundra's design services division, Silicon Logic Engineering, Inc., offers industry-leading ASIC and FPGA design services, semiconductor intellectual property and product development consulting. Tundra's smart technology connects critical components in high performance embedded systems around the world. For more information, please visit www.tundra.com.
Source: TUNDRA SEMICONDUCTOR CORPORATION
CONTACT: David Long, Chief Financial Officer, (613) 592-0859, ext. 1704,
David.long@tundra.com; Keri Zeran, Director, Marketing Communications, (613)
697-6788, Keri.zeran@tundra.com
