EZchip To Buy Tilera

EZchip and Tilera have signed a ‘definitive agreement’ for EZchip to acquire Tilera.EZchip will pay Tilera’s stockholders up to $130 million in cash; of which $50 million is payable at closing and up to an additional $80 million performance-related consideration.

Devesh Garg, the CEO of Tilera, will serve as EZchip’s President in charge of all US operations.

The acquisition delivers several things to EZchip:

Doubles EZchip’s total available market (TAM): To $2 billion, consisting of NPUs, multi-core CPUs, smart network adapters and appliances, for the data-center and telecom markets.

Adds data center and cloud networks to EZchip’s target markets: Market segments already identified by EZchip as strategic for future growth.

Broadens EZchip’s customer base: Adds over 100 Tilera customers in the various market segments.

Diversifies EZchip’s product lines: With the addition of 9-, 16-, 36- and 72-core CPUs and a family of intelligent network interface cards and white-box appliances.

“While our NPU portfolio and in particular our new NPS targets high-end carrier and data center equipment in which a high-performance data-plane only NPU is required, the Tilera multi-core CPUs address a wide range of data-center systems in which both data-plane and control-plane run on the multi-core CPU,” says EXchip CEO Eli Fruchter.

EZchip’s NPU family, the NPS, is targeting carrier edge routers as well as data center networking equipment.



  1. The VCs have taken a good opportunity to off-load it then, SilverMan

  2. Tilera was founded in October 2004. The VC funds probably have stayed in longer than they would have wished. Time to flip it, as is standard practice.

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