TranSwitch to buy Onex

Aug. 17, 2001 – Shelton, CT – TranSwitch Corp. has agreed to buy fellow communications chipmaker Onex Communications Corp., Bedford, MA, for about $75 million in cash and stock.

TranSwitch, which already owns 16 percent of Onex, agreed to pay $20 million in cash and 6 million shares of it stock – valued at about $55 – for the remainder of Onex.

TranSwitch said the deal would take 3 cents to 5 cents out of its per share earnings in the fourth quarter. Onex will operate as a subsidiary of TranSwitch.

In the second quarter, TranSwitch had a loss of $13.8 million, from a profit of $7.9 million a year ago. The downturn has not stopped TranSwitch from eyeing other communications companies as potential partners. In late July, the company made a strategic investment in TeraOp (USA) Inc., which is developing a range of optical switching and routing products.

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