DSP Group Completes Acquisition of NXP Semiconductor's Cordless and VoIP Terminals Business

By Mae Kowalke

TMCnet Associate Editor

 

Semiconductor manufacturer DSP Group (News - Alert) on Wednesday announced that its acquisition of NXP Semiconductor’s cordless and VoIP terminals business was successfully completed. The deal, in which DSP agreed to pay roughly $200 million cash and 4.2 million newly issued shares for the NXP business, was announced May 14.

 

With the deal now complete, NXP owns roughly 13 percent of DSP’s outstanding common stock. Further, an NXP nominee will be appointed to DSP’s board directors; this ‘class III’ director will serve until DSP holds its annual meeting in 2009.

 

NXP’s cordless and VoIP terminals business is a semiconductor company founded by Phillips more than 50 years ago. Headquarters are in Europe, and the company employs 37,000 employees globally.

 

The products manufactured by NXP include both hardware and software designed to delivery improved sensory experiences for users of mobile phones, portable media players, TVs, set-top boxes, ID apps, vehicles and other electronic devices.

 

In the announcement, DSP Group said it expects to see positive earnings impact from the acquisition starting in the fourth quarter of 2007 (excluding expenses related to the acquisition and intangible amortization).

 

DSP Group manufactures chip-set solutions for applications in the short-range wireless communications, home networking and converged voice/video/data markets. Integrated circuits from the company are used in MP3 players, IP gateways, VoIP phones and digital voice recorders.

 

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