Thursday June 29, 8:53 am Eastern Time
Company Press Release
SOURCE: Texas Instruments Incorporated
TI Acquires Dot Wireless, a Leader in CDMA Wireless Technology Strength in IS-2000 Enables TI to Deliver Wireless Solutions for All 3G Standards
DALLAS, June 29 /PRNewswire/ -- Texas Instruments Incorporated (NYSE: TXN - news; TI), the world leader in programmable digital signal processors (DSPs) and analog chips and the leading supplier of semiconductors to the wireless industry, announced today that it has reached a definitive agreement to acquire Dot Wireless, Inc., a leading expert in third generation (3G) CDMA wireless technology. Dot Wireless is a privately held company that develops and markets 3G wireless CDMA technologies, software and transceiver reference designs enabling the growing convergence of data and wireless communication services.
This acquisition enables TI to expand its offering of leading programmable DSP and analog-enabled wireless solutions across all 2.5G and 3G wireless standards and markets, including IS-2000. Dot Wireless has an advanced 3G- system architecture and protocol software suite providing efficient power consumption for both voice and high-speed data applications. It offers wireless system design capability for the launch of new 3G devices.
``Dot Wireless's expertise brings even more strength to TI's 3G wireless offerings,'' said Gilles Delfassy, TI vice president and manager of worldwide wireless communications. ``Dot Wireless brings expertise in both IS-2000 and Wideband-CDMA and will support TI's development of technologies for both standards.''
Wideband CDMA, or W-CDMA, is designed to support the 3G evolution from today's GSM, TDMA and PDC systems. IS-2000 is designed to support the evolution from today's IS-95 systems. TI is working with industry leaders, including Nokia, Ericsson and Sony, to incorporate TI technology in their next generation handsets and mobile computing devices. Dot Wireless's skills in IS-2000 will broaden TI's 3G wireless solutions.
``Dot Wireless's engineering team is made up of internationally recognized leaders in the field of CDMA technology,'' Delfassy said. ``TI is confident that we can build on our second generation leadership and expand our position for programmable DSP-based solutions for wireless handsets in 3G with the help of Dot Wireless's expertise.''
TI's DSP-based wireless platforms use the world's most popular programmable DSP -- the C5000 family -- and operate on all wireless standards. More than 60 percent of all digital wireless phones use TI DSPs. More than 80 percent use TI DSP or analog technology.
``We're very excited to become part of the world's premier wireless semiconductor company,'' said Rick Kornfeld, president, chief executive officer and co-founder of Dot Wireless. ``The skills we bring to TI for 3G wireless complement their current offerings, giving the company a broad set of wireless solutions for all 3G standards.''
The wireless market is expected to grow to more than 1 billion subscribers by 2002 according to industry analyst Dataquest. 3G phones will enable a host of new data and broadband capabilities for phones and mobile computing devices. Initial deployment of 3G phones is expected to begin next year.
Dot Wireless employs about 75 people. It will become part of TI's wireless group and operate under the Texas Instruments name. As part of this acquisition, TI will establish a wireless technology center in San Diego, joining other TI wireless technology centers in Dallas, Texas; Nice, France; Tsukuba, Japan; Aalborg, Denmark; and Kfar Saba, Israel. The acquisition is being made through a stock-for-stock transaction. Under the terms of the agreement, TI common stock will be exchanged for all outstanding shares of Dot Wireless (including all stock options) for an aggregate transaction value of $475 million.
The boards of directors of both companies have approved the acquisition which is expected to be completed by the end of the third quarter. The transaction will be accounted for using the purchase method of accounting and is intended to qualify as a tax-free exchange of shares under IRS regulations. Completion of the acquisition is contingent upon the applicable regulatory reviews and other customary conditions. Excluding purchased in-process research and development costs and amortization of acquisition-related assets, the acquisition is not expected to be material to TI's earnings per share. |
