Milpitas, CA--August 29, 1996--C-Cube Microsystems Inc. (Milpitas, CA) announced the completion of its acquisition of DiviCom Inc. (Milpitas, CA) pursuant to an agreement signed in May.
DiviCom is a digital video networking company that designs, integrates, and markets complete systems for the delivery of broadcast digital video networks.
C-Cube paid $65.7 million, issued approximately 2.29 million shares of its common stock, and assumed options excercisable for approximately 264,000 shares of its common stock in exchange for the outstanding shares of DiviCom stock that C-Cube does not already own. The acquisition is being accounted for as a purchase. C-Cube expects to incur one time charges in the third quarter associated with the acquisition of approximately $133 million dollars, based on the valuation of the transaction. Of the $133 million dollars, approximately $130 million dollars are for in-process research and development.
As a result of the acquisition, DiviCom has become a wholly-owned subsidiary of C-Cube. DiviCom will continue to operate from its headquarters with Nolan Daines continuing as president and CEO, reporting to Alex Balkanski, president and CEO of C-Cube.
1778 McCarthy Blvd.
Milpitas, CA 95035
Fax: (408) 944-6314
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