IDT to Acquire ZettaCom

For $35M, IDT picks up the switch fabric and traffic manager startup with an eye towards standard interfaces

April 15, 2004

2 Min Read

SANTA CLARA, Calif. -- IDT (Integrated Device Technology, Inc.; Nasdaq: IDTI), a leading communications IC company, today unveiled plans to accelerate the shift from proprietary to standards-based serial switching and bridging semiconductor solutions with its entrance into this fast-growing market. Key to the company’s efforts in this arena are the pending strategic acquisition of privately held ZettaCom, Inc. and the creation of a new division tasked with developing a strong technology roadmap for standards-based products to address the market for serial switching and bridging devices.“Our aggressive commitment to the serial switching market underscores our stated goal to raise our value proposition as a leading supplier of communications ICs and to expand our portfolio of products that accelerate packet processing,” said Greg Lang, IDT president and CEO. “We believe our strong and immediate presence in the serial switching market will help drive new standards, such as Advanced Switching, and more quickly move the industry toward higher cost efficiencies for network equipment.”The new serial switching division is built upon the acquisition of ZettaCom, a privately held, fabless network communications IC company that has been developing switch fabric and traffic manager solutions for the past four years. IDT plans to leverage ZettaCom’s switching technology and expertise to deliver high-value products to the industry. Daryn Lau, former ZettaCom CEO and president, will head up the new serial switching division as the vice president and general manager.“By combining ZettaCom’s fabric and traffic manager with IDT’s proven networking products, the company can address OEM requirements for next-generation serial switch and bridge markets,” said Jag Bolaria, senior analyst at The Linley Group. “With this acquisition, IDT is positioned to become a leader in the emerging standards-based switch and bridge markets, which are expected to exceed $700 million by 2008.”Integrated Device Technology Inc. (IDT)

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