Virata Acquires ATM, IP, MPLS Software

Buys Inverness Systems to boost its own broadband semiconductor developments

March 22, 2000

2 Min Read

Virata® Corporation (Nasdaq: VRTA)today announced that it has entered into a definitive agreement to acquire privately-held Inverness™ Systems, Ltd. in exchange for 850,000 shares of Virata common stock. The acquisition will give Virata access to Inverness Systems' ATM, IP and MPLS networking software; which is expected to expand Virata's IP routing capabilities and extend its leadership position as the only full solutions provider for broadband semiconductors and software.

"We believe this acquisition will enable Virata to quickly bring to market next generation technologies such as voice over DSL, IP routing, and integrated access devices," said Charles Cotton, chief executive officer at Virata. "Virata is the only company to deliver a complete and tightly integrated semiconductor and software solution, which enables us to consistently win top tier designs with leaders such as Ericsson, Netopia, Next Level, Orckit, Siemens, Westell and others. With the addition of the Inverness software suite, we intend to further extend this competitive lead and emerge as the leader and defacto standard for IP routing, broadband wireless and DSL applications."

As the leading supplier of ATM, IP and MPLS networking software solutions, Inverness Systems is engaged with most of the leading networking and telecommunications companies today. The acquisition will enable Inverness to improve the support of its existing customer base and deliver a more completely integrated software and hardware solution.

Inverness currently has 30 employees and maintains offices in Kfar-Saba and Jerusalem, Israel as well as Marlborough, Massachusetts. Virata intends to continue operations in these offices to extend its worldwide sales, marketing and support infrastructure and expand engineering centers of excellence for software networking technologies.

"The combination of Inverness software and Virata's integrated hardware/software solutions will be a powerful force in the rapidly expanding broadband and networking markets," said Jonathan Masel, president and founder of Inverness Systems. "The combination of Inverness and Virata's capabilities will deliver the most comprehensive software suite available, reducing customers' time to market and significantly lowering customers' cost of development."

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