November 10, 2009, 4:26 pm
Semiconductor firm Cavium Networks announced it has signed a definitive agreement to acquire embedded Linux pioneer MontaVista Software for $50 million. After the acquisition wraps up in December, MontaVista will run as a separate operating unit, retain its own brand name, and support multiple architectures, MontaVista execs Jim Ready and Dan Cauchy told LinuxDevices.
The $50 million deal is comprised of approximately $16 million in cash and $34 million in Cavium Networks common stock, says Cavium, a U.S.-based semiconductor firm that focuses on high-end carrier-grade networking processors. The acquisition of the privately held MontaVista is expected to “significantly increase Cavium’s software and services revenue, and is expected to be gross margin and non-GAAP earnings accretive in 2010 and beyond,” says the company…
