Date: 11/11/2009

Cavium Networks to acquire MontaVista Software

Cavium Networks has announced that it is has signed a definitive agreement to acquire MontaVista Software for $50 million, comprised of approximately $16 million in cash and approximately $34 million in Cavium Networks common stock. The deal is expected to close in December 2009. MontaVista Software is embedded Linux operating systems expert.

"Software is becoming an increasingly important part of the total solution with the rapidly increasing adoption of multi-core processors," said Syed Ali, President and CEO of Cavium Networks. "This acquisition will complement Cavium's market leading processor portfolio with world-class software expertise and will enable us to deliver highly compelling and differentiated solutions to the market."

"Embedded Linux is poised for rapid growth," said Rusty Harris, President and CEO, MontaVista Software. "By becoming part of Cavium Networks, MontaVista can confidently continue to offer industry leading commercial grade embedded Linux, support and services to our customers and partners."

"MontaVista is a leader in embedded Linux support and is a key software partner in the ARM ecosystem," said Warren East, CEO, ARM. "We believe as part of Cavium Networks, an existing ARM Partner, MontaVista will continue to deliver innovative Linux solutions optimized for current and future energy-efficient ARM processors and the range of silicon platforms which are based on them. This strategy is closely aligned with ARM's approach of enabling a broad ecosystem with the flexibility and choice needed to fuel differentiated market solutions across a range of application areas."

"MontaVista and MIPS have been close partners since 2001," said John Bourgoin, President and CEO of MIPS Technologies. "The combination of Cavium Networks and MontaVista is extremely promising for the continued availability of commercial and carrier grade Linux on the industry leading MIPS-based processors. We look forward to working together to enable the availability of MontaVista Linux on all licensed MIPS cores."