Conexant Systems, which provides semiconductor solutions for broadband communications, has reportedly purchased Zarlink Semiconductor’s packet switching business for $5 million in cash.

Zarlink, formerly Mitel (News - Alert) Corp., develops semiconductor solutions for voice, enterprise, broadband and wireless communications. Its customers include most of the big names in IP communications, including Cisco, Samsung, Nokia (News - Alert), Fujitsu, Siemens, Huawei (News - Alert), LG, Marconi, Alcatel (News - Alert), NEC (News - Alert), Infineon, Panasonic and Cochlear. The company focuses on timing and synchronization, packet processing, IP/Ethernet switching, TDM switching, and voice processing. It is also a leading supplier of customized ICs, digital signal processors and RF chips for cardiac pacemakers and hearing aids. In addition, it develops optical solutions for the high-bandwidth inter-connect, industrial, security, military and avionics markets.

Zarlink holds more than 2,100 patents and has pending applications in key technologies such as voice and packet processing, optical, RF and digital design. In terms of packet switching, it offers a range of Fast Ethernet aggregation switches for network access equipment. These switches will complement Conexant’s DSL central office (CO) product offering.

“The acquisition of Zarlink’s packet switching business allows us to further strengthen our DSL technology portfolio and market-leading presence in broadband access markets,” said Akram Atallah, senior vice president and general manager of Conexant's Broadband Access business, in a press release. “Zarlink’s digital switching logic technology is synergistic with our DSL central office product offering, and provides for non-blocking VDSL line card performance. Integrating our respective technologies will enable us to build on our solid foundation in access markets, and provides us with the opportunity to expand the product line into adjacent areas.”

“This transaction places all parties in the best position to succeed,” said Kirk K. Mandy, president and CEO of Zarlink Semiconductor, in a press release. “The packet switching business is not core to Zarlink’s long-term strategy, but its leading technology will prosper as part of a company with the scale to succeed in a competitive market. This transaction allows us to focus on key growth initiatives in the network communications, optoelectronics, ultra low-power wireless and analog foundry marketplaces.”

Conexant is a leading provider of DSL semiconductor solutions, including client-side xDSL and cable modem solutions, home network processors, broadcast video encoders and decoders, digital set-top box components and systems solutions, and dial-up modems. It offers a complete line of asymmetric and symmetric DSL central office solutions, which are used by service providers worldwide to deliver broadband data, voice, and video over copper telephone lines. It also offers a portfolio of IEEE 802.11-compliant WLAN chipsets, software and reference designs for asymmetric and symmetric DSL applications (including ADSL2+, SHDSL and VDSL2), as well as solutions for applications based on HomePlug and HomePNA. Fiber access solutions include the Xenon family of products for PON applications.

Conexant claims it has shipped more than 150 million DSL ports and that its CO DSL solutions have been deployed by more than 50 major service providers worldwide.

Conexant made news earlier this month when it announced that Huawei Technologies will be basing its new digital video broadcast cable (DVB-C) InfoLink C2510 set-top boxes on Conexant’s CX2415X MPEG audio/video broadcast decoder family. Huawei’s InfoLink C2510 receivers will be deployed in provinces including Guangdong, Zhejiang, and Guizhou in the People’s Republic of China.

For more information about Conexant, visit www.conexant.com.

For more information about Zarlink, visit www.zarlink.com.

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Patrick Barnard is Associate Editor for TMCnet and a columnist covering the telecom industry. To see more of his articles, please visit Patrick Barnard’s columnist page.