Vitesse Semiconductor to Buy XaQti for $65 Million

Vitesse Semiconductor Corp. in Camarillo, which makes non-silicon telecommunications chips, said it is buying Internet chip maker XaQti Corp. for $65 million in stock to add to its Internet switching products.

XaQti, based in Santa Clara, makes processors that help drive gigabit Ethernet data networks. Vitesse makes about one-quarter of its sales to Lucent Technologies, the world’s biggest phone-equipment maker.

Officials from both companies said the combination would benefit network-systems manufacturers by creating one-stop shopping for chips and processors. The sale is expected to close in July and will not affect earnings.

XaQti was founded four years ago and employs 35 people.