GlobeSpan to Acquire PairGain's Microelectronics Group; Purchase to Include Intellectual Property and Other Assets of PairGain's DSL Chipset Group
Business Wire - January 24, 2000 07:18
RED BANK, N.J. and TUSTIN, Calif.--(BUSINESS WIRE)--Jan. 24, 2000--GlobeSpan, Inc. (NASDAQ: GSPN), a leading provider of integrated circuit, software and systems designs for digital subscriber line (DSL) applications and PairGain Technologies, Inc. (NASDAQ:PAIR), a leader in DSL access systems, today announced that they have reached a definitive agreement for the purchase and sale of PairGain's microelectronics group, designers of integrated circuits and software for DSL applications, to GlobeSpan.
The purchase price will be a combination of 1,081,197 shares of GlobeSpan common stock and a $90.0 million subordinated redeemable convertible note. The deal is expected to close in the first quarter.
On November 15, 1999 PairGain announced its intent to divest its microelectronics group to facilitate PairGain's new focus on system-level, multi-service access platforms.
In addition, GlobeSpan and PairGain will enter into a supply agreement for the sale of DSL chipsets to PairGain. GlobeSpan, with this acquisition, will establish a Southern California design center from which it expects to expand over the next few years.
"We are extremely excited to add to GlobeSpan these intellectual property assets and 40 experienced DSL engineers from PairGain, stated Armando Geday, GlobeSpan's president and CEO. This opportunity to add to our core competencies and talent resources will enhance our ability to extend our market share lead, advance our product development and accelerate our time to market," added Geday.
"We are very proud of the past accomplishments of our microelectronics team and believe that the group will contribute significantly to GlobeSpan and towards the ongoing evolution of the DSL marketplace, said Mike Pascoe, PairGain's president and CEO. This move reinforces our focus towards the sales and support of system-level products, including Avidia, the industry leading DSL access switch. Our agreement with GlobeSpan allows us to continue to leverage the skills of the micro team without the costs associated with intensive ongoing development," he added.
About GlobeSpan
GlobeSpan, Inc. is a leading worldwide developer of advanced DSL
chipsets, which enable data transmission over the existing network of
copper telephone wires, known as the local loop, at rates over 100
times faster than today's commonly deployed 56K modems. To date, the
company has shipped more than one million DSL chipsets, representing a
significant share of this emerging market, to a customer base of more
than 100 DSL equipment manufacturers. GlobeSpan, Inc. is based at 100
Schulz Drive, Red Bank, New Jersey 07701 and can be reached by phone
at + 1-732-345-7500. The company's web site is www.globespan.net.
GlobeSpan is a trademark of GlobeSpan, Inc.
About PairGain Technologies, Inc.
PairGain is the leader in the design, manufacture and sale of DSL
networking systems. Service providers and private network operators
worldwide use PairGain's products to deploy DSL-based services such as
high-speed Internet and remote LAN access.
For more than 10 years, PairGain has been recognized as a
technology leader and industry innovator of telecommunications
equipment. The company offers the widest range of DSL-based systems
available.
Product lines include HiGain Solitaire (TM) HDSL2 solutions,
HiGain (R) T1/E1 access systems, PG-Flex Plus (TM), PG-Flex (R) and
PG-Plus (R) subscriber carrier systems, the Avidia (R) System, Megabit
Modems (R) and Campus-HRS (TM) DSL access products. Well over 1.7
million PairGain DSL modes are installed in more than 70 countries.
Additional information about the company is available on the
Internet at www.pairgain.com.
Except for the historical information contained herein, the
matters discussed in this press release are forward-looking statements
within the meaning of the safe-harbor provisions of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements are subject to risks and uncertainties that may cause
actual results to differ materially, including but not limited to
economic, competitive, governmental and technological factors
affecting both GlobeSpan's and PairGain Technologies' operations,
markets, services and related products, prices and other factors
discussed in GlobeSpan's recent prospectus and other periodic filing
with the Securities and Exchange Commission and PairGain's periodic
filings with the Securities and Exchange Commission.
CONTACT: GlobeSpan, Inc.
Bob McMullan
Chief Financial Officer
+1-732-345-7558
or
PairGain Technologies, Inc.
Kim Gower
+ 1-714-832-9922
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GSPN PAIR %NEW-JERSEY %CALIFORNIA %COMPUTERS %ELECTRONICS %HARDWARE %INTERNET %NETWORKING %SOFTWARE %MERGERS %ACQ V%BW P%BW
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