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.