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EZchip Semiconductor Limited (EZCH)

- NASDAQ
  • Jul. 1, 2014, 10:03 AM
    • EZchip (EZCH +1.6%) is paying $50M up-front, and up to $80M in performance earn-outs, to buy Tilera. The deal is expected to close in Q3.
    • Tilera's network processors (NPUs) pack dozens of cores that can be programmed to handle tasks well-suited to parallel processing. The company launched a 72-core NPU (offered through a PCIe card) last year, and has been prepping a chip with over 100 cores.
    • Whereas EZchip's NPUs are generally used in edge/access routers within carrier networks, Tilera's are often used in data center networking, security, and video appliances, and also act as co-processors within x86 servers. Tilera's rivals include Intel, Cavium, Broadcom, and Marvell.
    • EZchip declares the deal doubles its addressable market to $2B, and adds 100+ customers. The purchase is expected to be slightly dilutive to 2014 EPS, and accretive to 2015 EPS.
    • Tilera CEO Devesh Garg will become the head of EZchip's U.S. ops. EZchip predicts pairing its strengths with Tilera's will yield "new multi-core CPUs that uniquely integrate powerful networking capabilities with the highest number of processor cores addressing a wide range of applications and market segments."
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  • Jan. 4, 2012, 7:09 PM
    Marvell (MRVL +1.5%) has acquired Xelerated, a Swedish developer of network processing and Ethernet switching chips for a variety of telecom equipment. Xelerated, cited by Light Reading as a "key specialist" in the nascent market for processors handling 100-gig links, is a direct rival of EZchip (EZCH -1.4%), and also competes with top Marvell competitor Broadcom (BRCM -1.1%).
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  • Sep. 13, 2011, 1:37 PM
    NetLogic (NETL +0.2%) shares are quiet a day after Broadcom's (BRCM) $3.7B bid, as investor hopes for a higher competing bid fade. But Cavium (CAVM +3.2%) and EZChip (EZCH +6.5%) extend yesterday's speculative surge: JMP thinks CAVM could be a takeover target and the BRCM-NETL combo could add new business (also), and Bloomberg reports Marvell (MRVL) could make a bid for EZCH.
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Company Description
EZChip Semiconductor Ltd is engaged in the development & marketing of Internet application solutions to improve the connectivity & performance of corporate LAN & WAN.