Intel Corp said Monday that it has closed its previously- announced $1.6bn acquisition of communications chipmaker DSP Communications Inc. The deal was first made public on October 14 and the two companies received federal antitrust clearance on November 11. Intel made the purchase to increase its presence in the mobile phone chipset market. Initially, Intel will use software and baseband technology from the Cupertino, California- based company to develop chipsets for the CDMA, TDMA and PDC standards.
The deal was carried out through the merger of DSP with Intel’s wholly-owned subsidiary, CWC Acquisition Corp, with DSP becoming a wholly-owned subsidiary of Intel effective November 19. Under the terms of the tender offer, each outstanding share of DSP common stock has been converted into the right to receive $36 in cash, without interest.
