3/2/2004 - Conexant Systems, Inc. (Nasdaq: CNXT) announced the completion of its merger with GlobespanVirata, Inc. The two companies received the required shareowner approvals on Wednesday, Feb. 25, 2004, and the transaction closed on Friday, Feb. 27, 2004. The stock of the combined company begins trading on the Nasdaq National Market under the ticker symbol "CNXT." The merged company has annual run-rate revenues of approximately $1.2 billion and 2,400 employees worldwide. Based on Conexant's closing price on Feb. 27, 2004, the combined company has a market valuation of approximately $3.4 billion.
"We successfully combined the highly complementary product and technology portfolios of Conexant and GlobespanVirata to create a worldwide leader in semiconductor solutions for broadband communications, enterprise networks and the digital home, three of the industry's most exciting and fastest growing segments," said Armando Geday, Conexant's chief executive officer. "The new Conexant has leading positions in digital subscriber line connectivity, wireless local area networking, dial-up modems, home networking, broadcast video products and digital set-top box system solutions. Our unique combination of products and technologies will drive broader, deeper engagements with worldwide customers that are recognized leaders in broadband communications and consumer electronics."
The combined company, with an engineering and technical marketing staff of approximately 1,600, is addressing market segments that are expected to grow to $10 billion in annual sales over the next several years. These market segments include broadband access, wireless networking and media processing.
Broadband access products are comprised of central office and client-side solutions. The company's DSL and cable modem offerings enable service providers to deliver voice, video and data content to homes and businesses around the world, providing customers with multi-megabit connections to the Internet. The company also offers a leadership portfolio of wireless LAN, or "Wi-Fi" chipsets, complemented by a suite of networking components that link multiple PCs and peripherals over a home's telephone lines, electrical wiring, Ethernet, or wireless links. These DSL and Wi-Fi solutions are also being deployed in enterprise networks to provide high-speed upstream and downstream transmission rates for bandwidth-intensive applications and productivity increases. Media processing solutions include digital set-top box and PC video solutions that enable users to bring audio and video entertainment content from broadcast satellite, cable and terrestrial networks into and throughout the home. Together, these technologies allow consumers to access, share and display content on PCs, digital TV products and other emerging system platforms.
"We have made outstanding progress toward integrating the organizations, systems, technologies and processes of Conexant and GlobespanVirata over the past two months and are in a strong position as we begin combined operations today," said Geday. "The new Conexant has the scale and scope to make the necessary R&D investments for continued innovation leadership. We remain completely confident that the merged company will deliver stronger financial performance and will create more value for our shareholders, customers and employees than either Conexant or GlobespanVirata could have operating independently."
About Broadband Communications, Enterprise Networking and the Digital Home
With always-on broadband connections, the Internet has become an integral part of everyday life. Semiconductor products and technology are critical to enabling access to an ever-widening array of broadband services and content, and the seamless delivery of information and entertainment between public access networks and the digital homes and businesses they serve. With multi-megabit connections to worldwide broadband data, voice and video networks, people can now access, share and display content on a variety of consumer electronics devices within enterprise networks and the digital home. These solutions also enable the symmetric transport of data within enterprise networks, facilitating two-way, high-speed access and distribution of content within a business.
At the heart of today's digital home is a network that provides users with broadband Internet access and links devices such as personal computers, printers and game consoles cohesively and transparently, using both wired and wireless technologies. These broadband data and media processing networks are evolving, allowing people to connect additional products including personal digital assistants, digital cameras, MP3 players and other handheld appliances. With the commercialization of new technologies that enable the access distribution of high-quality digital video and audio content, broadband digital home networks will expand to include stereos, set-top boxes, televisions, and home security and automation systems.
Conexant's innovative semiconductor solutions are driving broadband communications, enterprise networks and digital home networks worldwide. The company has leveraged its expertise and leadership position in modem technologies to enable more Internet connections than all of its competitors combined, and continues to develop highly integrated silicon solutions for broadband data and media processing networks. Key products include client-side xDSL and cable modem solutions, home network processors, broadcast video encoders and decoders, digital set-top box components and systems solutions, and dial-up modems. Conexant's suite of networking components includes a leadership portfolio of IEEE 802.11a/b/g-compliant WLAN chipsets, software and reference designs, as well as solutions for applications based on HomePlug® and HomePNATM. The company also offers a complete line of asymmetric and symmetric DSL central office solutions, which are used by service providers worldwide to deliver broadband data, voice, and video over copper telephone lines. Conexant is a fabless semiconductor company with annual run-rate revenues of $1.2 billion. The company has approximately 2,400 employees worldwide, and is headquartered in Red Bank, N.J. To learn more, please visit us at www.conexant.com.
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