According to company officials, Ultracom's efficient silicon subsystems, multitone technology, and broadband access protocols complement Terayon's growing broadband portfolio. Terayon CEO Zaki Rakib stated, "The acquisition of Ultracom further expands Terayon's broadband systems-on-silicon expertise and intellectual property. This reinforces our strategy of delivering innovative broadband approaches for voice, data and video, over any medium -- cable, DSL and wireless."
Under terms of the agreement, shares of Terayon common stock valued at approximately $32 million will be exchanged for all outstanding securities of Ultracom. The acquisition will be accounted for as a purchase and is expected to close in the second quarter. This acquisition has been approved by Terayon's board of directors and is subject to various closing conditions.
Edited by Winn Hardin, Managing Editor