Thursday October 14, 8:02 am Eastern Time
Company Press Release
Intel To Acquire DSP Communications, Inc. For
Approximately $1.6 Billion In Cash
Acquisition Positions Intel for Growth in Cellular Communications and
for Internet Clients
Business Editors and High-Tech Writers
NOTE: Intel and DSP Communications executives will host a teleconference to discuss the details of this agreement and answer
questions today at noon EDT, 9 a.m. PDT. Press and analysts who are interested in hearing about this announcement may join
the teleconference by dialing (719) 457-2657. A full recording of the briefing can be accessed through October 21 by dialing
(719) 457-0820 with confirmation number 804032.
SANTA CLARA, Calif.--(BUSINESS WIRE)--Oct. 14, 1999--Intel Corporation and DSP Communications, Inc. (NYSE:
DSP - news) today announced the companies have entered into a definitive agreement under which Intel would acquire DSP
Communications, Inc (DSPC) for $36 a share in an all-cash tender offer valued at approximately $1.6 billion.
DSPC is a leading supplier of solutions for digital cellular communications products. DSPC products enable new generations of
feature-rich, compact, lightweight wireless handsets by providing a complete solution, including chipsets, reference design,
software and other key technologies.
This acquisition is an important element of Intel's plan to become the leading building block supplier to the Internet. In recent
years, cellular telephone adoption has exploded on a worldwide basis. Cellular voice and data applications are growing at a
rapid pace and emerging cellular broadband data communications networks can enable new Internet applications. In addition,
cellular communication is expected to be integrated into new types of Internet clients, such as handheld devices and mobile
computers, which will include voice, data and Internet access.
``DSPC brings tremendous experience in cellular digital and voice technologies which, when combined with Intel's data and
Internet expertise, will provide a more complete solution to the broad cellular market segment,' said Craig Barrett, president
and chief executive officer of Intel. ``Cellular technology is emerging as a new high-speed method of connecting to the Internet
and we believe over time will become increasingly important for connecting PCs to the Internet.'
``Combining DSPC's cellular expertise with Intel's semiconductor and data capabilities will create a leading provider of cellular
voice products, as well as establish voice and data solutions for the future,' said Davidi Gilo, chairman and chief executive
officer of DSPC. ``The industry needs suppliers that can deliver solutions such as chipset, design and software to meet
customers' cellular technology needs.'
DSPC's cellular technology solutions allow cellular handset manufacturers to build better devices with superior performance,
high integration and the smallest form factors while significantly reducing power consumption, time-to-market and overall system
cost. DSPC provides expertise in digital cellular technologies for personal digital cellular (PDC), time division multiple access
(TDMA), code division multiple access (CDMA) and third-generation (3G) standards.
Under the agreement, DSPC would become a wholly owned subsidiary of Intel reporting within Intel's Computing Enhancement
Group. DSPC employees will continue as employees of the new subsidiary. The companies do not anticipate any immediate
changes to their respective product lines and DSPC intends to continue delivering products to customers under existing
agreements, as well as maintain its existing manufacturing relationships.
The agreement provides for a cash tender offer to acquire all of the outstanding shares of DSPC common stock at $36 per
share, which will commence by Intel within five business days. The Board of Directors of DSPC has approved the definitive
agreement and has recommended that DSPC stockholders tender their shares pursuant to the offer. Intel's obligations to accept
shares tendered in the offer will be conditional upon the tender of a majority of outstanding DSPC shares on a fully-diluted
basis, regulatory approvals and other customary conditions. The current and former chief executive officers of DSPC have
agreed to tender their shares in the offer. It is expected that all shares not purchased in the tender offer will be converted into the
right to receive $36 per share in a second-step merger following the tender offer.
Headquartered in Silicon Valley, DSPC is a leading independent developer and supplier of form-fit reference designs, chipsets
and software to mobile phone manufacturers. DSPC develops, markets, licenses, and sells application specific integrated
circuits (ASICs) based on digital signal processing (DSP) technology, software stacks, and reference design development kits
for advanced wireless voice and data communications applications. DSPC wireless technology products support leading global
standards for CDMA, TDMA, and PDC, and will also support emerging third generation (3G) standards such as Wideband
CDMA and cdma2000. The company's customers include Cadence, Denso, Kenwood, Kyocera, Kokusai, Lucent
Technologies, Motorola, NEC, Philips, Pioneer, SANYO, Sharp, and SK Teletech. DSPC maintains a presence worldwide
with offices in the United States, Japan, Israel, and Canada. DSPC stock is traded on the New York Stock Exchange under
the symbol DSP. For more information, please visit dspc.com. |
