MOUNTAIN VIEW, CA–(Marketwire – 11/10/09) – Cavium Networks (NASDAQ:CAVM – News), a leading provider of highly integrated semiconductor products that enable intelligent processing for networking, wireless, storage and video applications, today 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.
Not much of a return on $90 at least $90 million of investment – although to be fair, some of that investment was from semiconductor companies that took it out in services, so to speak.
Yodaiken’s Rule: Anyone can create a $50M/year break even embedded Linux services company given enough investment.
(Thanks to JK for the snotty punctuation remark. Feh).