DSP Communications to Acquire Isotel Research

Chip set provider DSP Communications (DSPC) has signed a definite agreement to acquire Calgary-based Isotel Research Ltd. Isotel specializes in the development of call processing software and Java-based products and services for various wireless standards including TDMA, CDMA, and third-generation (3G) systems.

Isotel's software products control the call processing and user interface functions in a wireless handset. Once the acquisition is complete, DSPC plans to bundle this software into its chip set and reference designs.

The acquisition will be accounted for as a purchase. DSPC expects that the purchase price allocation will result in a non-recurring charge for in-process technology in the fourth fiscal quarter of 1998 and amortization of capitalized intangible assets over the next several years.