Dallas, Texas--Jan. 22, 1998--Texas Instruments, Inc. has entered intoa definitive agreement to purchase the principal assets and operationsof Spectron Microsystems, a wholly owned subsidiary of DialogicCorp. While specific terms are subject to closing adjustments,it is expected that the purchase price will be in the range of $20 to $26million. The acquisition further enhances TI's extensive digital signalprocessing (DSP) solutions offering, allowing its customers to shortentheir time to market and to focus on features that differentiate their products.
Spectron Microsystems, located in Santa Barbara, Calif., develops andmarkets advanced system software, such as real-time operating systems (RTOS)for use in digital signal processing applications. The company is a leader inproducts that ease software development, eliminating some low-levelprogramming tasks. With this transaction, TI will extend its leadership indigital signal processing solutions by offering the most complete developmentenvironment, simplifying DSP development, and making TI DSP solutions even moreattractive for a broad range of fast-growing markets.
Digital signal processors are powerful, specialized semiconductors thatare ideal for very fast, math-intensive computing, and are used in a varietyof electronic end-equipment, such as cellular phones, modems, and hard diskdrives. The DSP market is projected to grow at a compounded annual growthrate of about 35 percent per year over the next five years, according tomarket research firm Forward Concepts.
Spectron was formed in 1987 and was acquired by Dialogic in February of1995. Spectron will remain in Santa Barbara, reporting into the TIsemiconductor group. The company has about 60 employees.
Spectron's products include Spox and BIOSuite. Spox is a real-timeoperating system for DSP applications. The BIOSuite products provideimplementations of the TI DSP/BIOS open software application programminginterface (API) standard. The DSP/BIOS API defines a common set of functioncalls that improves overall code quality and shortens development time.
Over the past year, TI has taken a number of strategic actions to furtherits leadership in digital signal processing solutions, including recentacquisitions of Amati Communications Corp. and GO DSP Corp.These acquisitions bring TI additional expertise in xDSL digital modemtechnology and DSP software development tools. Closing of the Spectronacquisition is expected to be finalized by March 1, 1998, subject togovernmental approvals and certain conditions of closing.
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