San Jose, California-based Sierra Semiconductor Corp is to acquire the other 39% of PMC-Sierra Inc it does not already own, and expects to take a significant one-time charge against figures for the third quarter ending October 2 as a result. It will pay 2.5m new shares worth $27.5m for the stake in the Vancouver, British Columbia developer of broadband transmission and networking chip set products for Asynchronous Transfer Mode, Synchronous Optical Network and T1/E1 high speed network applications. The charge will cover the value of in-process technology development acquired through the purchase of PMC-Sierra, plus the legal, accounting and other costs incurred in the acquisition. PMC-Sierra is to retain its name and its present management structure. Sierra says it wants PMC-Sierra to meet its goal of being able to deliver vital parts for audio, data and visual communications, and feels that PMC-Sierra is an ideal fit with that mission. PMC-Sierra is a co-founder with Sun Microsystems Inc of the Saturn Development Group, established to facilitate the development of Synchronous Optical Network-framed components for Asynchronous Transfer Mode local and wide area networks based on the interoperability specifications established by the ATM Forum.
