Monday, December 5, 2011

Bethel Finance: DSPG buys Israeli company for $10m

www.bethelfinance.com

Bethel Finance news:

Shrinking revenue in the cordless telephone market and the need for new growth engines have led DSP Group Inc. (Nasdaq: DSPG), which develops wireless chipset solutions home communications, to make its first acquisition for a long time. Today, the company announced that is was buying Israeli company BoneTone Communications for a total of $10 million.

BoneTone has developed two chips with special voice processing capabilities, that give a higher quality listening experience with cell phones and tablet computers. The first, HDClear, for cell phones and Bluetooth devices, completely neutralizes background noise, allowing conversations to take place even when one of the parties is in a noisy place.

The second chip, HDMobileSurround, for earphones, enables smartphone and tablet users to enjoy stereophonic sound of home cinema quality when watching a movie, listening to music, or playing games.

DSPG says that the acquisition provides it with diversification and cutting-edge technology in the promising and fast-growing mobile device market. BoneTone's products are expected to generate revenues already in 2012.

DSP Group's acquisition of BoneTone comes two years after the companies entered into a strategic partnership. Toward the end of 2009, DSP Group acquired an equity stake in BoneTone that included a 24-month option to purchase the company's remaining shares.

DSPG CEO Ofer Elyakim said, "The acquisition of BoneTone enables us to differentiate and expand our product portfolio, as well as strengthen our leadership in converged communications. By leveraging our product development abilities, marketing infrastructure and broad customer base, we expect BoneTone's innovative solutions to generate growth in several areas. BoneTone's focus on the mobile phone industry further opens the door to an expanding market with long-term growth potential."

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