Inphi Corporation has signed a definitive agreement to acquire ClariPhy Communications Inc. for $275 million in cash. ClariPhy provides ultra-high speed digital signal processing (DSP) systems-on-chip (SoC) for multi-terabit data, long haul and metro networks. This DSP capability complements Inphi’s fiber optic components, which will enable Inphi to offer more of the block diagram for optical networks.

Ford Tamer, president and CEO of Inphi, said “Following closing, we expect to have platform offerings for long haul, metro, DCI edge, and intra-data center applications. We believe this will provide customers with faster time-to-market, proven quality and competitive cost.”

Inphi is responding to the move to coherent dense wavelength division multiplexing (DWDM) optical networks. Long used for long-haul links, coherent DWDM is migrating to metro networks. IHS estimates the total available market for 100G and 200G coherent optical network hardware will grow at an 18 percent compound annual growth rate (CAGR) between 2015 and 2020, from $3.2 billion to $7.4 billion.

ClariPhy is one of only three merchant suppliers with coherent DSP technology. Following closing, Inphi will be able to offer customers

• coherent DSP, TIAs and drivers for long haul and metro
• direct detect PAM DSP-based solutions for DCI edge between data centers, and
• NRZ and PAM short reach solutions for inside data centers.

The acquisition is expected to close in December 2016, at which time ClariPhy’s employees will join Inphi. Nariman Yousefi, ClariPhy’s CEO, will join Inphi to run the coherent DSP business. ClariPhy’s VP of engineering and DSP architect, Oscar Agazzi, will also join the company. Inphi will assume certain ClariPhy liabilities at close.