Saturday, June 6, 2009

MoSys Acquires Prism Circuits, Inc.

SUNNYVALE, Calif.--(BUSINESS WIRE)--MoSys, Inc. (NASDAQ: MOSY), a leading provider of high-density system-on-chip (SoC) memory intellectual property (IP), today announced the acquisition of substantially all of the assets and business of privately held Prism Circuits, Inc., a profitable supplier of high data rate parallel and serial interface (I/O) IP. The acquisition is expected to result in the following benefits:
  • Expand MoSys’ product portfolio and addressable markets with the addition of highly valued and differentiated IP
  • Accelerate the growth opportunity for MoSys’ 1T-SRAM IP in the networking and communications markets and provide stronger customer synergies
  • Increase revenue and generate positive cash flow for the second half of 2009 and 2010
  • Add a world-class team of engineers, including a highly talented, cost-efficient engineering design center in India
Founded in 2006 and based in Santa Clara, California, Prism Circuits specializes in silicon-proven, low-power, serial interface IP cores (SerDes) with data rates running at 10 gigabits per second and above, and IP cores for DDR 3 and DDR 2 parallel interfaces. Prism Circuits has established customer relationships with tier one companies such as Fujitsu, Microsoft and Juniper, as well as strong foundry relationships with Fujitsu and TSMC, which MoSys expects to build on and improve.

Under the terms of the agreement, MoSys paid approximately $13.5 million at the closing, and potentially will pay an additional earn-out amount of up to $6.5 million after the first anniversary of the closing date, subject to the attainment of specified milestones during the initial 12-month post-acquisition period. MoSys has not assumed any Prism stock options or employee equity incentive awards but has agreed to grant up to a maximum of 3.7 million shares of MoSys common stock under stock options or restricted stock units (RSUs) to 25 newly hired former Prism Circuits employees (with one RSU share equated to three option shares for this purpose).