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Westell acquires Amati
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October 1, 1997: 12:57 p.m. ET
$394M transaction will expand network of high-speed data lines
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NEW YORK (CNNfn) - Westell Technologies Inc. will buy Amati Communications Corp. to expand its network of high-speed data lines in a stock swap valued at $394 million, the companies said Wednesday.
Under terms of the deal, Westell will exchange .9 percent of its stock for each share of Amati stock. Based on Westell's closing stock price Tuesday of 22-3/16, the deal would be worth $394 million.
The combined company, with a market value of $1.2 billion, will offer products and services in the Digital Subscriber Line (DSL) market that provides high-speed data lines.
"This merger will enable our customers to accelerate their deployment of high speed data services," said Gary Seamans, chief executive of Aurora, Ill.-based Westell.
Jim Steenbergen, chief executive at Amati, added, "Our two companies share the same vision for developing technologies to deliver high-speed multimedia services."
DSLs run over copper telephone lines and expand the bandwidth so people can download data into their computers, said Mark Meudt, a company spokesman.
The technology allows users to talk, send faxes, go onto the Internet and conduct teleconference calls at the same time.
Amati (AMTX) created and developed the core technology through their affiliation with Stanford University, Meudt said. Westell (WSTL) developed methods to use the technology in the industry.
"It's a marriage of a core technology company with a systems integrator company," Meudt said. 
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Westell
Amati
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