RED BANK. N.J. -- DSL-chip designer GlobeSpan Inc. here on Tuesday said it will acquire iCompression Inc., a developer of broadband voice, video, and data applications in a nearly $400 million all-stock deal aimed at broadening GlobeSpan's voice-over-packet technology portfolio.
GlobeSpan said its acquisition target possesses an application-specific programmable architecture that combines dedicated cores for hardware acceleration and customizable programmable DSPs. Specifically, iCompression, of Santa Clara, Calif., is focused on the voice-over-packet market and is developing silicon, firmware, software drivers, and reference designs in an effort to boost performance and channel density while reducing customers' time to market.
GlobeSpan will exchange approximately 4 million shares of its common stock and plans to retain all of iCompression's 55 employees. The transaction is expected to close in the second quarter. GlobeSpan's stock closed up more than 11% on Tuesday at $98.06. Based on the closing price, the acquisition would be valued at about $392 million.
GlobeSpan said the technology will allow it to increase its ability to offer integrated devices for voice, video, and data applications for DSL equipment vendors.
"iCompression's resources and capabilities will strengthen our ability to execute on our strategy to expand our product offering to DSL equipment manufacturers," said Armando Geday, GlobeSpan's president and CEO. "This strategic merger allows us to accelerate our development with fully integrated system-on-a-chip product for the VoDSL and VoIP markets."