Daniel Hoste, chief executive of Tundra Semiconductor.

Tundra Semiconductor Corp. has gone shopping for a new product to broaden its interconnect solutions portfolio.

The Ottawa-based company said Thursday it has signed an agreement with an unnamed company worth $15.4 million US. Tundra said the product represents a new product line and new market opportunity for the company.

"The acquisition of this highly competitive product is a positive step forward for Tundra and strongly positions the company for future growth," said Tundra CEO Daniel Hoste in a statement. "Tundra's new product strategy will deliver intelligent interconnect products, to provide our customers with a competitive edge in their system designs where performance depends more and more on the input/output and interconnect architecture solutions."

The company will pay the $15.4 million over the next three fiscal years. Tundra said it expects the new product to begin contributing to its revenues beginning in its fiscal 2010, and said it anticipates that lifetime revenue will represent approximately eight to 12 times the total investment cost.

Tundra makes devices which transport data between different computer components in high-performance embedded systems.

The company declined to provide more details on the type of product it had purchased or the name of the company from which it had bought the technology.