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Altera buys optical transport network IP firm

December 15, 2010 // Dylan McGrath

Altera buys optical transport network IP firm

Programmable logic vendor Altera Corp. said Tuesday (December 14) it acquired optical transport network (OTN) IP provider Avalon Microelectronics Inc. Terms of the acquisition were not disclosed.

Altera (San Jose, CA) said the acquisition expands its portfolio of customizable IP solutions for OTN applications, supporting data rates at 1.2G, 2.5G and 10G, as well as 40G and 100G.

"As FPGAs increasingly replace ASICs and ASSPs in the heart of many systems, Altera is delivering more system-level technologies and solutions to our customers," said Don Faria, senior vice president of Altera's Communication and Broadcast Business Division, in a statement.

Faria said Avalon has been a key Altara partner for many years and is the sole IP supplier for the 100G OTN solutions implemented in Altera's FPGAs.

As communications network bandwidth requirements grow exponentially to support video data (which comprises over 90 percent of consumer traffic), service providers need equipment providing flexible provisioning and seamless upgradeability for next-generation standards, such as 100G and 400G, according to Altera. The optical wavelength-division multiplexing (WDM) equipment market is expected to grow from $6.7B to $10.4B, or 56 percent from 2010 to 2014, with 40G and 100G deployments leading the way, Altera said, citing data published by market research firm Infonetics Research.

"The integration of our two companies' technologies and expertise will dramatically accelerate our communications customers' time to market with next-generation optical networks, as our combined customizable IP enables our customers' differentiation in their market," said Wally Haas, Avalon's founder and chief technology officer.

Altera said the acquisition does not represent a material financial matter for the company.

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