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Macom Extends Cloud Services Reach with Applied Micro Acquisition

By | November 21, 2016
      Applied Micro’s PQx 10G/40G Optical Transport Network (OTN) framer/PHY System-on-a-Chip (SoC) for carrier ethernet router and WDM transport systems. Photo: Applied Micro

      Macom is extending its reach in cloud and data center services with the acquisition of Applied Micro Circuits. Photo: Applied Micro Circuits

      [Via Satellite 11-21-2016] In a deal valued at $770 million, Macom Technology Solutions, a supplier of analog Radio Frequency (RF), microwave, millimeterwave and photonic semiconductor products, will acquire Applied Micro Circuits Corp., a provider of connectivity and computing solutions for cloud infrastructure and data centers. The acquisition aims to accelerate Macom’s growth in optical technologies for cloud service providers and enterprise network customers serving the data center market.

      Within the first 100 days, Macom intends to sell Applied Micro’s compute business, calling the business “well-positioned but non-strategic” in a statement released by the company. The divestment of the compute business aims to boost revenues for Applied Micro’s business, which touted a 2016 earning of $165 million in Trailing Twelve Month (TTM) revenue as of Sept. 30, including the compute business.