LONDON — ARC International plc. is buying, for $5 million, the bulk of the assets of Teja Technologies Inc., which specializes in multiprocessor and networking software. ARC says the U.S. firm's technology would speed the development of its VRaptor multiprocessor architecture.

The acquisition includes Teja's software products, key customer contracts, its engineering team, and patents for Teja's tools.

ARC International (Elstree, England) also announced Monday (April 2) a series of organizational changes, which includes the appointment of Dr Akash Deshpande, founder and CTO of Teja , as one of three members of a newly created Office of the CTO, and the promotion of Derek Meyer, senior VP of sales and marketing, as chief operating officer.

ARC will pay an initial $3.4 million in cash for Teja (San Jose, Calif.) with the balance to be paid in stages over two years based upon completion of performance targets. The company said the deal would have an impact of up to $2 million on ARC's results in financial year 2007.

For the year ended December 31, 2006 Teja reported a loss of $3.3 million. The gross assets of the software development group on March 30, 2007 were $900,000.

Teja was founded in 1998 with funding from venture firms such as the Mayfield Fund and Intel Capital. Customers include major companies such as Intel, Cisco Systems, Samsung, and Sun Microsystems.

Carl Schlachte, president and CEO of ARC International, said in a statement: "Teja is a recognized technology provider of multicore software platforms to semiconductor companies and OEMs globally. Its renowned engineering and R&D staff will extend ARC's technical leadership and help advance the development of platforms for ARC's next-generation solutions. Furthermore, the acquisition brings an immediate benefit to ARC's customers targeting the networking segment, as well as a strategic benefit for the evolution of the VRaptor Multicore Architecture."

Schlachte said the other members of the Office of the CTO will be Dr Nigel Topham, ARC's chief architect, and the chair of Computer Systems and director of the Institute for Computing Systems Architecture at the University of Edinburgh; and Dr. Tom Pennello, the CTO and co-founder MetaWare, ARC's technical director of software technology, and a former professor at the University of California, Santa Cruz.

ARC says the aim of this triumvirate and their group will be to "advance ARC's technology leadership and innovation in the areas of configurability, multicore architecture and software platforms."

Meyer's role expands to include worldwide engineering activities as well as ARC's technology initiatives. Executives reporting to him include members of the office of the CTO; Paul Holt, who assumes the newly created role of VP of product development and services; and David Doyle, who becomes VP of worldwide field operations.