San Jose, California and Eindhoven, Netherlands, September 5, 2007 – DSP Group, Inc. (Nasdaq: DSPG) and NXP Semiconductors, the independent semiconductor company founded by Philips, today announced the completion of DSP Group's acquisition of NXP’s Cordless and VoIP terminals business. The transaction, which was initially announced on May 14, 2007, involved the initial payment by DSP Group of approximately $270 million, consisting of approximately $200 million in cash and 4,186,603 newly issued shares of DSP Group’s common stock. As a result of the transaction, NXP now owns approximately 13% of DSP Group's outstanding common stock and an NXP nominee will be appointed to DSP Group’s board of directors as a Class III director to serve until DSP Group’s annual meeting of stockholders in 2009.
DSP Group expects the transaction will have a positive impact on earnings per share beginning in the fourth quarter of 2007, excluding transaction expenses, intangible amortization and related one time charges in connection with the acquisition.
DSP Group will update its financial outlook for the combined operations and discuss the integration process on its scheduled third quarter results earnings conference call on October 31, 2007.
About DSP Group
DSP Group, Inc. is a fabless semiconductor company, offering advanced chip-set solutions for a variety of applications. DSP Group is a worldwide leader in the short-range wireless communication market, enabling home networking convergence for voice, video & data. By combining its in-house technologies of Digital Signal Processors (DSPs), portfolio of wireless communication protocols, including DECT, Bluetooth and Wi-Fi, most advanced Radio Frequency CMOS and SiGe, as well as VoIP ICs, DSP Group is a worldwide leader and a one-stop-shop for a wide range of applications. These applications include ISM band digital 900MHz, 2.4GHz and 5.8GHz telephony, European DECT (1.9GHz) telephony, Bluetooth systems for voice, data and video communication and deployment in residential, SOHO, SME, enterprise and automotive applications. DSP Group ICs provide solutions for MP3 players, VoIP Phones, Gateways, and Integrated Access Devices and are widely used in Digital Voice Recorders. More information about DSP Group is available at www.dspg.com.
NXP is a top 10 semiconductor company founded by Philips more than 50 years ago. Headquartered in Europe, the company has 37,000 employees working in 26 countries across the world. NXP creates semiconductors, system solutions and software that deliver better sensory experiences in mobile phones, personal media players, TVs, set-top boxes, identification applications, cars and a wide range of other electronic devices. News from NXP is located at www.nxp.com.