EINDHOVEN, Netherlands and SANTA CLARA, Calif., May 14 /PRNewswire-FirstCall/ -- NXP Semiconductors, the newly independent semiconductor company founded by Philips, and DSP Group, Inc. residential telephony market.
The transaction can reach a total value of $345 DSP Group will pay $270 million, consisting of $200 million in cash and to the closing of the transaction, for NXP's Cordless VoIP terminals business, currently part of the company's Mobile and Personal Business Unit. payable based on future revenue performance. The transaction is expected to be positive to earnings per share of DSPG in 2007 and beyond, excluding transaction expenses, intangible amortization and other one time charges in connection with the acquisition.
The transaction is expected to close in the third quarter of 2007, subject to closing conditions, including regulatory the world, most of whom will transfer to the DSP Group. benefit of all major customers in our industry. We will have a much stronger technologies.
NXP will also become a strategic investor and will get a seat on the Board of Directors of DSP Group, and will not transfer its shares of DSP Group common stock for at least two years following the closing," said Eli Ayalon Chairman and CEO, DSP Group. its business. It allows NXP to focus our growth on the six chosen market automotive, identification and multi market semiconductors.
Additionally with the proceeds we will be able to strengthen these segments, for example with future acquisitions. I am confident that this deal will benefit our global customers in the cordless market, as they will be served well by this new strong market leader, "said Frans van Houten, NXP President and CEO. Commenting on the deal, Egon Durban, Managing Director of Silver Lake, on behalf of the group of private equity investors in NXP, observed, "We continue to be excited by our investment in NXP.
This transaction illustrates the leaders, and will generate substantial benefits for both parties and their software and system solutions for: DECT, DECT 6.0, WDCT 2.4, 5.
8, Analog 900, 2.4, 5.8, VoIP/MTA, USB Softphones, and VoIP Gateways.
In 2006, the group sold approx. 300 million products in digital cordless. DSP Group was advised by UBS Investment Bank and Morrison Foerster.
NXP DSP Group, Inc. is a fabless semiconductor company, offering advanced chip-set solutions for a variety of applications. DSP Group is a worldwide leader in the short-range wireless communication market, enabling home networking convergence for voice, video data.
By combining its in-house communication protocols, including DECT, Bluetooth and Wi-Fi, most advanced Radio Frequency CMOS and SiGe, as well as VoIP ICs, DSP Group is a worldwide leader and a one-stop-shop for a wide range of applications. These applications include ISM band digital 900MHz, 2.4GHz and 5.
8GHz telephony, European DECT (1.9GHz) telephony, Bluetooth systems for voice, data and video communication and deployment in residential, SOHO, SME, enterprise and automotive applications. DSP Group ICs provide solutions for MP3 players, VoIP Phones, Gateways, and Integrated Access Devices and are widely used in Digital Voice Recorders.
More information about DSP Group is available at years ago. Headquartered in Europe, the company has 37,000 employees working in more than 20 countries and posted sales of EUR 5 billion in 2006. NXP creates semiconductors, system solutions and software that deliver better sensory experiences in mobile phones, personal media players, TVs, set-top boxes, identification applications, cars and a wide range of other electronic devices.
News from NXP is located at www.nxp.com.
the financial condition, results of operations and business of DSP Group and transaction, including statements regarding the timetable for completion of the transaction and the benefits of the transaction, including the accretive effect on EPS, increase of revenues and expansion of the company. Forward-looking statements are subject to certain risks, trends and projected, expressed or implied by such forward-looking statements, including, will not be integrated successfully; the risk that the revenue potentials, relationships with customers, employees or suppliers and other risks and uncertainties associated with the contemplated transaction. Actual results statements for various reasons, including those discussed in "Risk Factors" in DSP Group's Form 10-K.
You should not place undue reliance on any forward-looking statements. Except as expressly required by the federal securities laws, DSP Group undertakes no obligation to publish, update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason. to the financial condition, results of operations and business of NXP and certain of the plans and objectives of NXP with respect to these items.
By their nature, forward-looking statements involve risk and uncertainty because DSP Group has scheduled a conference call for 8:30 a.m. EDT today to 1-617-614-4072 for international calls, the pass code is DSP Group.
The call http://ir.dspg.com.
/phoenix.zhtml?c=101665 p=irol-calendar.
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