Conexant Expects to Complete Mindspeed Spin-off by Summer

Conexant’s board of directors approved a plan to separate its Mindspeed Technologies Internet infrastructure business in a tax-free spin-off to shareowners. Mindspeed’s three key product families include multiservice access solutions designed to support voice and data services across wireline and wireless networks, T/E carrier physical- and link-layer products, and ATM/MPLS network processors. Mindspeed also offers a line of optical transmission devices and switching chips. At the time of spin-off, Conexant shareowners will receive a dividend comprised of all of the outstanding shares of Mindspeed on a pro rata basis. Mindspeed will receive an initial capital funding of $100 million in cash from Conexant, plus an additional $50 million cash in contingent financing. The deal is expected to close in the summer. After the spin-off, Conexant will focus on broadband communications chips that are used on the client-side connection, such as in set-top boxes (STBs), residential gateways, PCs and game consoles. These chips include DSL and cable modem solutions, home network processors, broadcast video encoders and decoders, digital STB components and system solutions, and the company’s foundation dial-up modem business.
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