SANTA CLARA, Calif.--Communications processor supplier Virata Corp. today announced plans to acquire voice software developer D2 Technologies Inc. for about $90 million in common stock.
Virata said it wants to expand its suite of software for digital subscriber line (DSL) applications with advanced voice capabilities from D2 Technologies, based in Santa Barbara, Calif. Virata expects to complete the acquisition in February and will account for the transaction as a purchase
The integration of voice and data over DSL lines is becoming a key area of development at Virata. The company plans to expand operations at D2's Santa Barbara facility "in order to speed the delivery of voice solutions and reference designs to our growing customer base," said Charles Cotton, CEO of Virata. "An increasing number of Virata customers are looking for voice capabilities, and we believe our timing for delivery of these integrated solutions will enable them to rely on Virata products over the long term."
Virata said voice software from D2 Technologies is currently used in telecommunications systems sold by many of the world's top 10 suppliers. It hopes to leverage these existing relationships into expanded business for both processors and software technologies.
"As part of the Virata team, we plan to fully support our existing customer base while combining our extensive voice software capabilities with Virata's established DSL technology," said David Wong, president of D2 in Santa Barbara. "These technologies will deliver a trulyintegrated network for voice and data."