Broadcom to Acquire Silicon Spice

BOSTON (08/08/2000) - Integrated circuit maker Broadcom Corp. plans to acquire chipmaker Silicon Spice Inc. for US$1.2 billion in stock, the company said Monday.

Silicon Spice develops semiconductor technology, software and development tools for high-density voice, fax and data packet transport over wide area networks (WANs). The Mountain View, California company's processor will enable Broadcom to enter new markets in the Internet Protocol (IP) and ATM packet-based networks with flexibility for Any-Service-Any-Port (ASAP), the companies said in a statement.

Silicon Spice's processor, moreover, allows Internet service providers (ISPs), Internet telephony service providers (ITSPs) and interexchange carriers (IXCs) to deliver voice and data services simultaneously over a unified data network with the highest density of voice channels in the industry, the companies said.

Cisco Systems Inc. was an early investor and client of Silicon Spice.

Broadcom's primary business is with integrated circuits that allow broadband digital transmission of voice, video and data. Broadcom and Silicon Spice's technology will be integrated to provide high density packet telephony, the companies said.

Also in the deal, Broadcom will gain the knowledge and expertise of Vinod Dham, Silicon Spice's chairman and chief executive officer. Dham worked at Intel Corp. on the development of the Pentium chip and later worked for Advanced Micro Devices Inc. (AMD) on the company's K6 chip.

Broadcom will issue 5 million shares of its stock to acquire Silicon Spice.

Both companies' boards have approved the merger, which should be completed in two months. The acquisition of Silicon Spice was the seventh for Broadcom this year.

Broadcom, in Irvine, California, can be contacted at +1-949-450-8700 or at http://www.broadcom.com/. Silicon Spice, in Mountain View, California, can be reached at +1-650-940-7777 or at http://www.silicon-spice.com/.

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