Intersil Corporation Announces Agreement to Sell Wireless Networking Product Group to GlobespanVirata, Inc.
Tuesday July 15, 9:05 pm ET
MILPITAS, Calif.--(BUSINESS WIRE)--July 15, 2003--Intersil Corporation (ISIL):
Definitive agreement signed by Intersil and GlobespanVirata today
Intersil refines strategic focus as a pure high performance analog supplier
Intersil confirms second quarter guidance
Intersil Corporation (Nasdaq:ISIL - News) a world leader in the design and manufacture of high performance analog and wireless networking solutions, announced today that it has entered into a definitive agreement to sell its Wireless Networking Product Group to GlobespanVirata, Inc. (Nasdaq:GSPN - News). The sale price is approximately $365 million and will be paid in cash and stock. Intersil anticipates finalizing the sale prior to the end of the third quarter of 2003 and expects to report a one-time gain on the transaction.
"Intersil has been instrumental in creating the wireless local area networking (WLAN) market and our team has done an outstanding job over the past five years making us the acknowledged industry leader under our PRISM® brand," said Rich Beyer, President and CEO of Intersil. "As the 802.11 WLAN market continues its strong growth, this technology is increasingly becoming an integral part of the communications, computer and consumer landscape. The challenges of this WLAN evolution are resulting in even greater differences in the business models of Intersil's High Performance Analog Product Groups and its Wireless Networking Product Group. We have made a strategic decision to focus our technology and resources entirely on our leadership positions in high performance analog. As WLAN technology continues to migrate into new applications from broadband modems to cell phones, we believe the required capabilities to address this trend fit perfectly with the strategy and competencies of GlobespanVirata."
"GlobespanVirata has established itself as the leading provider of integrated circuits, software and system designs for broadband communications applications. They are as highly respected for their success in the broadband communications market as Intersil's Wireless Networking Product Group is in the WLAN market," Beyer continued. "Selling our Wireless Networking Product Group to GlobespanVirata will help keep PRISM the leading 802.11 brand and better serve the WLAN market and our customers. We want to assure all of our customers that there will be no change in our relationship during the transition. Our current wireless team will continue to provide the high level of quality and service that customers have come to expect with Intersil and our PRISM products."
The sale will include Intersil's portfolio of PRISM-based wireless networking products and intellectual property, as well as the design, marketing, sales, applications teams and support operations. The Wireless Networking Product Group is comprised of around 300 employees. In the first quarter of 2003, the Wireless Networking Product Group reported revenue of approximately $49 million. Transition teams, including employees from both companies, will work to ensure as seamless a transition as possible for Intersil's wireless networking customers during the sale.
...
biz.yahoo.com |
