Inphi Corp. announced an agreement to sell its memory product business to Rambus Inc. for $90 million in cash, including a 12.5 percent escrow. The company expects the deal will close during the first half of the third quarter.

The sale frees Inphi to focus on products for communications networks, building on its position in long-haul, metro, intra- and inter-data center networking. The company's products include modulator drivers and transimpedance amplifiers, which help convert high speed electrical signals to optical at the transmitter, then back to electrical at the receiver. Inphi competes with GigPeak, MACOM and Qorvo.

Ford Tamer, president and CEO of Inphi, said, "We are planning to double down on our product roadmap for long-haul, metro, inter-data center and intra-data center customers. As a result, we expect the higher rate of revenue growth for our core communications will become more apparent, and we expect to report higher gross and operating margins and a stronger balance sheet. In 2016, we expect a neutral to slightly accretive impact to earnings per share."