Conexant Acquires Microcosm, Broadens Physical-Layer Optical Portfolio

Newport Beach, CA-based Conexant Systems Inc. has acquired Microcosm Communications Ltd. (Bristol, UK), a supplier of high-speed integrated circuits for fiber optic communications. The all-stock transaction, which has been approved by the boards of directors of both companies, is valued at approximately $128 million, plus certain payments tied to future performance, for a potential total consideration of up to $180 million. The shares will be issued at $66.48 per share, based on the average price of Conexant's stock during the 10 trading days ending Jan. 4, 2000.

Microcosm's products are primarily targeted for high-volume data communications traffic aggregation at the edge of optical (SONET/SDH) networks and will broaden Conexant's physical-layer product portfolio currently focused on the high-speed core of optical networking infrastructures. Microcosm's products address the 155-megabit-per-second (Mbps) OC-3, 622 Mbps OC-12, and 2.5-gigabit-per-second OC-48 market segments.

Conexant expects the acquisition will contribute to earnings per share in its current fiscal year.

Edited by Kristin Keiser