Maxim Integrated Products has Phyworks, the Bristol-based fibre optic communications device firm for around $72.5m in cash.
The deal will give Maxim high speed optical communications device technology which will expand its existing range of optical transceiver products.
Phyworks has amplifier and equalisers for data rates up to 2.5Gbit/s and 10Gbit/s.
The UK firm will also bring to the US chip firm fibre-to-the-home (FTTH) devices.
“The backbone to support the increased data traffic is high-speed optical networks, and optical networks are now beginning to reach consumers directly with fibre to the home,” said Maxim CEO Tunc Doluca.
“The addition of Phyworks’ product portfolio and talent to Maxim strengthens our market position to capitalize on this growth,” said Doluca.
In a business sense the deal is attractive as gross margin on Phyworks high speed transceivers is better than the Maxim average.
According to Stephen King, President and CEO of Phyworks." As the optical communications markets continues to evolve, technologies from both companies can be combined to create higher performance, lower cost solutions."
See: Q5 Interview - Stephen King, Phyworks