Tel Aviv, Israel–March 27, 2000 - Orckit Communications Ltd. announced that it has entered into a definitive agreement toacquire privately held Silicon Value Ltd. in exchange for 2 Millionshares of Orckit's ordinary shares.
The acquisition will complement Orckit's semiconductor division throughcombining both units to form a new fabless company, focusing onstandardized and customized DSL and broadband semiconductors.
Silicon Value has 71 employees and maintains offices in San Jose,California and Jerusalem, Israel. Orckit intends to immediately buildupon the operations of Silicon Value to add to the newly formedsemiconductor company.
The new company intends to continue Silicon Value's ASIC operation andto leverage Silicon Value's current customer base, which includes majorcommunications companies such as 3Com and Lucent Technologies.
According to the company, the acquisition will: (a) further expand thenewly formed spun-off company's engineering design team; (b) provideimmediately effective, U.S.-based sales and marketing channels; and (c)provide technical support facilities for the new communication IC's.
Silicon Value has a four-year track record of designing andselling complex ASICs in the datacom, telecom and consumer areas.
“This is a very synergistic union,” said Mr. Moti Kintzlinger, CEO ofSilicon Value. “While we continue to service our existing customers withour ASIC offerings, we shall add to that a very compelling product lineto make our total product line more attractive. We are very excited tobe able to bring our capability in designing high density and low powerIC's to the DSL product area, in which it is vital.”
Mr. Kintzlinger will serve as a member of the Board of the newly formedsemiconductor company.