PLX Technologies (PLXT), a leading supplier of PCI Express silicon, is acquiring privately-held 10GBASE-T chip designer Teranetics for $36 million. While this move solidifies PLXT's presence as a data center networking chip supplier, it is not a great exit for Teranetics' investors. The company has raised $61 million since 2003, and along with Solarflare and Aquantia, makes up the leading triumvirate of 10GBASE-T chip suppliers. While 10GBASE-T power consumption per port has dropped as low as 3 watts as production has shifted to smaller process geometries, the technology is still advancing at a slow pace in the data center.
Teranetics key customers include Mellanox (MLNX), to whom it supplies the PHY for that vendor's 10GBASE-T LOM product. PLXT reported revenues of $30 million last quarter and has a market cap of $139 million.