Rambus has signed a definitive agreement to purchase Inphi’s Memory Interconnect Business for $90M in cash. The acquisition includes all assets of the Inphi Memory Interconnect Business including product inventory, customer contracts, supply chain agreements and IP.
According to Rambus CEO Ron Black, the acquisition will further strengthen Rambus’ market position for memory buffer chip products, while amplifying execution for future programs to meet the evolving demands of the server, networking and data center markets.
“We are constantly evaluating ways to build upon our solid foundation and grow our businesses in order to better meet the needs of today’s market dynamics,” Black explained. “By combining our buffer chip team with the Memory Interconnect Business of Inphi, we are able to instantly gain a strong market position and be well situated for future growth. This acquisition brings existing product revenue, proven technology and faster time-to-market with a best-in-class memory technologies portfolio.”
As Black points out, the semiconductor industry has been undergoing significant consolidation this past year, with multiple companies using strategic and focused M&A to refine and strengthen their respective positions, on both a tactical and strategic level.
“We absolutely believe this transaction will do the same for Rambus and our investors. Like our recent transactions with Smart Card Software and Snowbush, we are focusing on two c’s – completing spectacular solutions and consolidating the industry,” he continued. “[In fact], Inphi was the first company to provide conventional buffer chips, essentially defining the technology and market with DDR3. [This is why] we are acquiring the bulk of the team, all of their current and in-design products, intellectual property, customer, supplier and other contracts, as well as all other assets customary in such a deal.”
Inphi’s Memory Interconnect Business is currently shipping DDR2 and DDR3; along with a number of DDR4 buffer chipsets. The acquisition, says Black, will enable Rambus to get to market faster, get to profitability faster and expedite the company’s buffer chip strategy.
“Our roadmaps will ultimately converge to ensure we deliver solutions most efficiently, taking the best technologies from both companies,” he confirmed. “We also plan on continuing the work Inphi has initiated with a strategic partner on an exciting advanced memory type program which is part of technology area we were already considering.”
In addition, says Black, the acquisition will accelerate Rambus’ DDR5 solution.
“[It will] bring together a combined team that is well poised to take a significant lead in the industry and also to innovate and provide more value to our customers and the ecosystem, which is our plan,” he concluded.
It should be noted that the above-mentioned acquisition remains subject to customary closing conditions and is expected to close during the third quarter of 2016. These acquired technologies will ultimately be part of Rambus’ Memory and Interfaces Division.