Monday, May 14, 2007

DSP Group Buys VoIP Terminal Business From NXP Semiconductors

NXP Semiconductors, a new spinout of Philips, and Santa Clara-based DSP Group, inc. announced today that they have combined their Cordless & VoIP terminals business in a $345M deal. DSP Group will pay $270M in cash and stock for NXP's Cordless & VoIP terminals business, including $200M in cash and the balance in newly issued common stock. The deal also includes up to $75M in contingent payments based on revenue peformance. NXP's cordless and VoIP terminals business had approximately $220M in revenues for 2006. The firms said that most of NXP's roughly 200 staff in the business will transfer to the DSP group. DSP Group was advised by UBS Investment Bank and Morrison Foerster in the deal; NXP was advised by Merrill Lynch and De Brauw Blackstone Westbroek.