Juniper stock and cash worth about $260M will be exchanged for all outstanding shares of the integrated circuit maker

December 11, 2000

1 Min Read

SUNNYVALE, Calif. -- Juniper Networks, Inc. (Nasdaq:JNPR - news) today announced the closing of a definitive agreement to acquire privately-held Micro Magic, Incorporated (MMI) of Sunnyvale, CA., a leading integrated circuit solutions company. Founded in 1995, MMI is an experienced team with deep and broad expertise in the tools, methodologies, and design techniques required to build high performance integrated circuits. The employees of MMI will be integrated into the Juniper Networks engineering organization and will contribute to continuing advances in the design of silicon for IP infrastructure at Juniper Networks. Under the terms of the agreement, Juniper Networks common stock and cash worth approximately $260 million will be exchanged for all outstanding shares of MMI. Juniper Networks expects a charge of approximately $24.7 million in the fourth quarter of 2000 for in-process research and development and the amortization of goodwill and deferred compensation. For the full year of 2001, we expect a charge of approximately $113.4 million for the ongoing amortization of goodwill and deferred compensation associated with the acquisition.

"The talent, tools, and technology that Micro Magic brings to our core IP infrastructure engineering team will allow us to maintain and extend our lead in providing service provider customers with best-in-class systems," said Pradeep Sindhu, founder and CTO of Juniper Networks. "Having a team that has worked together and developed innovative silicon processes and tools will enable us to accelerate innovation in our core market space."

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