Optical components

Altera Buys T-Pack From AppliedMicro

AppliedMicro Inc. is selling its TPack subsidiary to Altera Corp., the companies announced Monday.

Terms of the agreement were not disclosed but probably involve cash and a player to be named later. The deal is expected to close this month.

AppliedMicro will retain rights to use TPack's technology.

Separately, Altera and AppliedMicro announced they'll be combining Altera FPGA with the AppliedMicro X-Gene server processor, creating some kind of new beast intended for data centers.

Why this matters
It's not immediately clear why AppliedMicro wants to divest Copenhagen-based TPack, which it acquired for $32 million in 2010.

Altera's side is a little more obvious. TPack developed intellectual property for chips -- that is, the company created designs intended to go inside other chipmakers' electronics. FPGA vendors need arsenals of this stuff.

Altera's intellectual property stash also includes Avalon Microelectronics, another silicon intellectual property company that's worked on OTN. (See 100G Watch: Chips Get Merger Fever.)

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— Craig Matsumoto, Managing Editor, Light Reading

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