As I remember, the original estimate was for that the sale of all extraneous divisions would bring in around $200M. $191M would be a slight short-fall which would in effect raise the price NN is paying for STC.
Shortfall or not, it appears the value of STC is exceeding the purchase price:))
BTW, Intel and ADI have been working on a new core DSP chip for basestations.
September 23, 1999 13:38
Intel Aquires Stanford Telecom's Telecom Component Group: Provides Newbridge Access to Broadband Silicon Technology for Industry Leading Broadband Wireless Solution
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KANATA, ONTARIO--(BUSINESS WIRE)--Sept. 23, 1999--Newbridge Networks (NYSE: NN; TSE: NNC) and Stanford Telecommunications (Nasdaq: STII) today announced that Intel (NASDAQ: INTC), the world's largest chip manufacturer, has acquired Stanford Telecom's Telecom Component Products (TCP) division.
Stanford Telecom's Sunnyvale, CA -based TCP division provides silicon components for head-end equipment used by cable companies and broadband wireless service providers as well as customer premise equipment (CPE) such as cable modems and set-top boxes. This transaction allows Newbridge to retain access to the silicon components required for the Wireless Broadband Products group.
As part of the transaction, Newbridge and Intel plan to work together to define and develop subsequent generations of advanced silicon for broadband wireless. The two companies will also jointly promote further standardization in broadband wireless.
"We believe that by working with Intel to further siliconize and standardize LMDS, we will significantly enhance the attractiveness of our broadband wireless solution and accelerate deployments in the industry by driving down costs and facilitating multi-vendor interoperability," said Conrad Lewis, executive vice president, Access Products Group, Newbridge Networks.
Newbridge announced on June 22, 1999 that it had signed a definitive agreement to acquire Stanford Telecom, a leading supplier of key broadband wireless technologies and products.
The signing of today's agreement with ISTANBUL will have no impact on the pricing of the transaction or the proceeds to be paid to the shareholders of Stanford Telecom.
Intel, the world's largest chip maker, is also a leading manufacturer of computer, networking and communications products. Additional information about Intel is available at www.intel.com/pressroom.
Stanford Telecom designs, manufactures and markets advanced digital communications products and systems to establish or enhance communications via terrestrial wireless, satellites and cable. Stanford Telecom's technical strengths include: system design, communication waveforms, modulation and demodulation techniques, ASIC design, radio frequency (RF) antennas and converters, software and firmware, asynchronous transfer mode design and advanced manufacturing techniques and processes. Stanford Telecom was founded in 1973, maintains headquarters in Sunnyvale, California. News and information are available at www.stelhq.com.
Newbridge Networks designs, manufactures, markets and services wide area networking solutions for Internet service providers; local, long-distance, and wireless communications companies; cable television carriers; and enterprise customers in more than 100 countries. The Company leverages its relationship with a growing family of Newbridge Affiliate companies and strategic alliances with numerous other networking companies to deliver complete, end-to-end solutions. Newbridge customers include the world's 350 largest telecommunications service providers and more than 10,000 corporations, government organizations and other institutions. Founded in 1986, the Company employs more than 6,000 people on six continents. News and information are available at www.newbridge.com.
Newbridge and logo are registered trademarks of Newbridge Networks Corporation.
CONTACT: Newbridge Networks Corporation
Christopher Fox, 613/591-3600 Ext. 6516
E-mail: cfox@newbridge.com
Website: www.newbridge.com
or
Newbridge Networks Corporation
John Lawlor, 613/591-3600 Ext. 1013
E-mail: jlawlor@newbridge.com
or
Stanford Telecom
Gary S. Wolf, 408/745-2403
E-mail: gary.wolf@stelhq.com
or
FitzGerald Communications
Joe Vukson, 617/588-2258
E-mail: jvukson@fitzcomm.com
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