Friday, September 24, 2010

PLX Buys Teranetics

Sunnyvale-based PLX Technology, a developer of networking semiconductors, said last night that it has signed a definitive merger agreement to acquire Teranetics, a developer of mixed signal semiconductors for 10 Gigabit Ethernet. Teranetics is a maker of 10GBase-T PHY technology. The deal is worth $27.6M in stock plus $1.3M in cash, plus two promissory notes worth $6.9M. PLX also said it extended a $1M, bridge loan to Teranetics, prior to the merger, as well as assuming $18M in corporate obligations, including cash bonuses for Teranetics employees. $5.4M of the notes is due one year from closing, and $1.5M is due three years from closing. Teranetics was founded in 2003, and was venture backed by Global Catalyst Partners, Granite Global Ventures, US Venture Partners, and Venrock Associates.