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Subsequent Events
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9 Months Ended |
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Sep. 30, 2014
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| Subsequent Events [Abstract] | |
| Subsequent Events |
8. Subsequent Event
On October 6, 2014, the Company announced that it had signed a definitive agreement to acquire Physpeed Co., Ltd., a privately held developer of high-speed physical layer interconnect products addressing enterprise and telecommunications infrastructure market applications. At the closing of the acquisition, the Company expects to pay approximately $11.0 million in cash in exchange for all outstanding shares of capital stock and equity of Physpeed. A portion of the consideration payable to the shareholders will be placed into escrow pursuant to the terms of the definitive merger agreement. In addition, the definitive merger agreement provides for potential earnout consideration of up to $750,000 for the achievement of certain 2015 and 2016 revenue milestones. In addition, the Company plans to enter into retention and performance-based agreements with Physpeed employees for up to $3.25 million to be paid in cash or Class A common stock of the Company based on the achievement of 2015 and 2016 revenue milestones.
The boards of directors of each of the companies have approved the merger. The closing, which is expected to occur during the three months ended December 31, 2014, remains subject to customary closing conditions, including the approval of Physpeed’s shareholders.
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