TranSwitch announces plans to acquire the ASIC design centre of data JCE, Ltd.
TranSwitch Corporation, announced that it has entered into a definitive agreement to acquire substantially all of the assets of the ASIC Design Centre division of Data JCE, Ltd., a publicly-held Israeli electronic components distribution company. The Data JCE ASIC Design Centre develops and supplies customer-specific semiconductor products primarily to Israeli OEMs and fabless semiconductor companies, or Israeli divisions of US and European companies under exclusive agreements.
"TranSwitch has been in the business of providing ASSP (Application Specific Standard Products) semiconductor devices. However, in order to differentiate their platforms, our customers occasionally seek functionality that is not found in standard products," said Dr. Santanu Das, president and CEO of TranSwitch. "By being able to provide customer-specific ASIC solutions to complement our broad array of ASSP offerings, TranSwitch is expanding its available service market."
The division presently ships products to seven active customers purchasing 13 products under exclusive sales arrangements. This ongoing business will be transferred to TranSwitch when the acquisition closes. TranSwitch believes that this new ASIC design group's operations will be accretive in 2007.Under the terms of the agreement, TranSwitch will pay an up-front cash consideration of $1 million. The acquisition is expected to close on or about January 10, 2007.
