Tilera takeover tips EZchip into data centre and cloud equipment spaces
Wed 2 Jul 2014
High-performance network processor maker, EZchip Semiconductor is to target the data centre and cloud equipment markets following its acquisition of Tilera, the multi-core processor and network equipment maker.
EZchip reckons the deal will double its total available market in the data centre and telecoms spaces to $2bn featuring, as it now does, an extended range of network processing units (NPUs), multi-core processors, smart network adapters and appliances.
Another key attraction of the deal is to give EZchip impetus in the data centre and cloud networks arena which it has identified as “strategic for future growth”.
It is paying Tilera’s private stockholders $130m in cash although some is being reserved against future performance.
The two clearly feel there are strong synergies in their technologies, expertise and customer bases. “While our NPU portfolio targets high-end carrier and data centre equipment in which a high-performance data-plane only NPU is required, the Tilera multi-core CPUs address a wide range of data centre systems in which both data-plane and control-plane run on the multi-core CPU,” said Eli Fruchter, CEO of EZchip Semiconductor.
“Furthermore, the combination of EZchip’s and Tilera’s technologies, in particular EZchip’s networking expertise and Tilera’s multi-core expertise, will enable us to develop new multi-core CPUs that integrate powerful networking capabilities with the highest number of processor cores addressing a wide range of applications and market segments,” he added.