TranSwitch Corporation Completes Acquisition of Centillium Communications, Inc.
October 27 2008 - 8:00AM
Business Wire
TranSwitch� Corporation (NASDAQ: TXCC), a leading provider of
semiconductor solutions for the converging voice, data and video
network, today announced that it has completed its acquisition of
Centillium Communications, Inc. (NASDAQ: CTLM), a leading provider
of highly innovative communications processing technology. Under
the terms of the agreement entered into on July 9, 2008, TranSwitch
will issue an aggregate of 25,000,000 shares of common stock and
pay $15,000,000 in cash, which will be allocated pro rata among
holders of Centillium common stock and in the money stock options
outstanding at the closing of the merger. Centillium stockholders
will own approximately 16% of the combined company. �We are pleased
to welcome Centillium�s customers, employees and shareholders to
the TranSwitch team,� said Dr. Santanu Das, president and CEO of
TranSwitch Corporation. �The combined company offers a portfolio of
best-in-class communications semiconductor products for
next-generation broadband access, Fiber-to-the-Home, Voice-over-IP,
carrier Ethernet, and HDMI-based video transport. The combined
company will also be a major beneficiary of high profile global
telecommunications projects in countries such as the UK, Korea,
China, India, and Japan.� About TranSwitch Corporation TranSwitch
Corporation (Nasdaq: TXCC) designs, develops and markets innovative
semiconductors that provide core functionality and complete
solutions for voice, data and video communications network
equipment. As a leading supplier to telecom, datacom, cable
television and wireless markets, TranSwitch customers include the
major OEMs that serve the worldwide public network, the Internet,
and corporate Wide Area Networks (WANs). TranSwitch devices are
inherently flexible, many incorporating embedded programmable
microcontrollers to rapidly meet customers� new requirements or
evolving network standards by modifying a function via software
instruction. TranSwitch implements global communications standards
in its VLSI solutions and is committed to providing high-quality
products and services. TranSwitch, Shelton, CT, is an ISO 9001:2000
registered company. For more information, visit www.transwitch.com.
Forward-looking statements in this release, including statements
regarding management's expectations for future financial results
and the markets for TranSwitch's products, are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. Investors are cautioned that these forward-looking
statements involve risks and uncertainties that could cause actual
results to differ materially from those contained in the
forward-looking statements, including without limitation the risk
that the businesses of TranSwitch and Centillium will not be
integrated successfully and without delay; the risk that the
transaction may involve unexpected costs or unexpected liabilities;
uncertainties concerning the effect of the transaction on
relationships with customers, employees and suppliers of either or
both companies; and other risks associated with TranSwitch�s and
Centillium�s businesses such as the risks associated with acquiring
new businesses; the risk of downturns in economic conditions
generally and in the telecommunications and data communications
markets and the semiconductor industry specifically; risks in
product development and market acceptance of and demand for
TranSwitch's products and products developed by TranSwitch's
customers; risks relating to TranSwitch's indebtedness; risks of
failing to attract and retain key managerial and technical
personnel; risks associated with foreign sales and high customer
concentration; risks associated with competition and competitive
pricing pressures; risks associated with investing in new
businesses; risks of dependence on third-party VLSI fabrication
facilities; risks related to intellectual property rights and
litigation; risks in technology development and commercialization;
and other risks detailed in TranSwitch's filings with the
Securities and Exchange Commission. TranSwitch is a registered
trademark of TranSwitch Corporation.
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