CUPERTINO, Calif.-DSP Communications Inc. signed a definitive agreement to acquire Isotel Research Ltd., a Calgary, Canada-based developer of call-processing software and Java-based products and services.
DSPC said the acquisition fits in with its goal of expanding its position as a leading supplier of chipsets, reference design and software for cellular phone manufacturers worldwide. Isotel’s software technology controls the cellular phone’s call processing and user interface functions. By bundling DSPC’s chipsets and reference design with Isotel’s software technology, DSPC hopes to provide cellular phone manufacturers with a one-stop integrated solution for wireless technology, said the company.
“The importance of a complete handset solution that includes high-level software protocols is growing,” said Joseph Perl, president and chief executive officer of DSPC. “Until now, cellular phone manufacturers often had to deal with multiple vendors for silicon and software.”
The acquisition will be accounted for as a purchase, and DSPC said it expects the purchase price allocation will result in both a nonrecurring charge for in-process technology in the fourth fiscal quarter and amortization of capitalized intangible assets over the next several years.
