PMC-Sierra, an Internet infrastructure semiconductor solution provider, has signed a definitive agreement to acquire Wintegra, a provider of network processors optimized for mobile backhaul equipment. Wintegra's WinPath family of network processors - combined with their networking software - is used in 3G/4G base stations, fiber and microwave cell-site routers, as well as radio network controllers deployed globally in mobile networks. These single-chip solutions enable carriers to increase throughput on their mobile backhaul networks while successfully scaling and migrating to packet-based architectures.

Under the terms of the deal, PMC-Sierra will pay Wintegra $240 million in cash consideration less an estimated net cash amount of $27 million on Wintegra's balance sheet at time of closing, for a net purchase price of $213 million. PMC-Sierra intends to use its existing balance sheet cash to finance the acquisition. Further, up to an additional $60 million of cash consideration may be paid if certain growth and performance milestones are reached by the end of 2011.