Vitesse Semiconductor Announces Plan to Acquire Orologic Corporation for $450 Million; Alliance Semiconductor to Receive Approximately 852,000 Shares of Vitesse
(BusinessWire, 03/28/2000 11:19)
SANTA CLARA, Calif.--(BUSINESS WIRE)--March 28, 2000--In a press release dated March 27, 2000, Vitesse Semiconductor Corporation ("Vitesse" - NASDAQ:VTSS), a world leader in the design, development, manufacturing and marketing of high bandwidth communications integrated circuits for next generation DWDM and optical networking markets, announced that it agreed to acquire Orologic Corporation ("Orologic"), in a transaction estimated to be worth $450 million in Vitesse common stock. The transaction is expected to be completed before the end of April.
Orologic Corporation, based in Morrisville, North Carolina was founded in October 1997 as a fabless semiconductor company that develops high performance system on a chip solutions that enable data packet processing at OC-48 and OC-192 rates.
In connection with the proposed merger, Alliance Semiconductor Corporation ("Alliance" - NASDAQ:ALSC), through it's new venture arm, Alliance Venture Management, LLC, will receive approximately 852,000 shares of Vitesse for its equity interest in Orologic. Upon the completion of the merger, Alliance will report a gain based on the closing share price of Vitesse on the date of the merger. Based on the closing share price of Vitesse on March 27, 2000, the estimated pretax gain from this transaction would be approximately $ 68 million.
Company Information
Alliance Semiconductor Corporation is a leading worldwide supplier of high performance memory and memory intensive logic products. Alliance's product lines include Static Random Access Memory (SRAM), Dynamic Random Access Memory (DRAM), Flash memory and embedded memory and logic products.
Alliance designs, develops and markets its products to the desktop and portable computing, networking, telecommunication, instrumentation, and consumer markets. Alliance manufactures its products through independent and joint venture manufacturing facilities, using advanced CMOS process technologies with line widths as narrow as 0.25 microns.
The Company, through its venture arm Alliance Venture Management, LLC, invests in three venture funds. Alliance Ventures I, LP focuses on investing in networking and communication start-up companies, Alliance Ventures II, LP focuses on investing in internet and software start-up ventures, and Alliance Ventures III, LP, focuses on emerging companies in the networking and communication market areas.
Alliance was founded in 1985. Additional Company information can be found on our home page: alsc.com.
Forward Looking Statements
Except for historical information, the above statements of this press release (including, without limitation, expressions of expectation, belief, anticipation or estimation of the Company or its management) are forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in the forward looking statements. These risks and uncertainties include such factors, among others, potential problems in Vitesse's acquisition of Orologic, changes in stock price of Vitesse; adverse changes in value of other investments made by Alliance Venture Management, LLC; and the risk factors listed under Item 1: Business and Item 7: Management's Discussion and Analysis of Financial Condition and Results of Operations in the Company's Form 10-K for the fiscal year ended April 3, 1999, and subsequent 10-Qs, which have been filed with the Securities and Exchange Commission, which is available through the Company's home page, alsc.com. These forward-looking statements speak only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or to reflect any change in events, conditions or circumstances on which any such forward-looking statement is based, in whole or in part.
CONTACT: Alliance Semiconductor Corporation
David Eichler, 408/855-4960
deichler@alsc.com |
