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Intel buys telecom firm
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June 1, 1999: 10:32 a.m. ET
Chip maker's $780 million purchase of Dialogic gives it access to growing biz
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NEW YORK (CNNfn) - Chip maker Intel Corp. said Tuesday it will buy telecommunications software provider Dialogic Corp. for $780 million in cash.
Under the terms of the deal, Dialogic (DLGC) shareholders will receive $44 per share, a 33 percent premium over Friday's closing price.
The acquisition, Intel (INTC) said, will expand its server business in the multibillion-dollar networking and telecommunications market segment.
Parsippany, N.J.-based Dialogic makes software products used in voice, fax, data and speech recognition systems.
"This merger strengthens Intel's position as a key supplier to the converging Internet and telecommunications industry," said Craig Barrett, president and chief executive officer of Santa Clara, Calif.-based Intel. "Our goal is to make Intel-based servers the foundation of e-business and communications applications based on integrated voice and data networks."
Dialogic shares rose on the news, climbing 3/8 to 33-3 /4 in early trading Tuesday. But Intel shares dipped 3/8 to 53-11/16.
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Intel
Dialogic
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