Semiconductor IP acquisition announced

The planned acquisition of Ingot Systems will expand Virage Logic's range of products and services required in the rapid development of System-on-Chip (SoC) integrated circuits.

Virage Logic has entered into an agreement to acquire privately held Ingot Systems, a provider of critical functional IP and design services to the semiconductor industry.

The planned acquisition will expand Virage Logic's ability to serve the company's chosen market by adding new products and services required in the rapid development of System-on-Chip (SoC) integrated circuits to Virage Logic's current family of memory compilers, logic libraries and related development tools.

The proposed acquisition is an all-cash transaction and is expected to be accretive (nonGAAP) beginning in early fiscal year 2008.

The transaction is expected to close by 15th August, 2007.

Memory controllers play an important role in integrated circuits (ICs) involving external dynamic random access memory (DRAM).

Key markets for such ICs include data storage, enterprise networking, mobile, graphics and consumer electronics.

Virage Logic already has a well-established global customer presence with semiconductor suppliers who are addressing the above-mentioned markets.

Ingot Systems' innovative technology is silicon proven and includes integrated DDR1, DDR2, DDR2/3 and MobileSDR/Mobile DDR memory controllers which include a memory controller, physical layer (PHY), and delay locked loop (DLL).

"In our engagements with well over 300 existing worldwide customers, we have seen the need to provide additional IP building blocks to enable successful and timely development of large SoC products", said Dan McCranie, Virage Logic President and Chief Executive Officer.

"Our memory compiler and logic library families have set the standard for high-quality products by providing our customers with a wide variety of advanced features".

"We will now begin to add to this portfolio by providing additional families of IP products that are needed today by our customer base".

"By bringing Ingot Systems' strong technology teams into our company, we believe we will be providing the initial technological and operational nucleus for Virage Logic to provide a much more comprehensive product and services solution to our customers".

"We are excited to be a part of Virage Logic because the company's global sales channel will make Ingot Systems' product offering more broadly available in the market and their award-winning customer services organisation will help ensure customers receive the highest quality support", said Jai Iyer, Ingot Systems co-founder, President and Chief Executive Officer.

"As the semiconductor industry's trusted IP partner, Virage Logic also has a proven track record of developing leading technology through continuous investments in RandD, which will help Ingot Systems' product line continue to evolve to meet customer requirements", said Raghavan Menon, Ingot Systems co-founder and Vice President of engineering.

Ingot Systems has approximately 30 employees in two locations: Santa Clara, California and Pune, India.

Ingot Systems' California employees will relocate to Virage Logic's Fremont headquarters.

The Pune, India location will retain its employees and this site will establish Virage Logic's second research and development facility in that country.

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