PMC-Sierra Completes $240M Wintegra Acquisition

"Officials from PMC-Sierra, Inc. (NASDAQ:PMCS) announced that the company has finished its buyout of Wintegra, Inc. for $240 million in a cash deal.

The terms of the acquisition were laid out on October 21, 2010, in which PMC-Sierra said it would consider paying Wintegra an added $60 million if the company grows and performs better by the close of 2011.

Wintegra is an integrated network processor provider with an estimated 165 employees; the company is located in Austin, Texas and Ra'anana, Israel. On September 22, 2010, PMC-Sierra was downgraded two notches to Underperform from Outperform, with its price target lowered to $8.00 from $10.50, at Credit Agricole.

The stock is trading at $7.38 which is 0.82% higher than the downgrade price of $7.32."

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