Conexant To Split, Launch IPO

One company will focus on Internet infrastructure; another will target mobile and broadband to the home

September 13, 2000

1 Min Read

NEWPORT BEACH, Calif. -- Conexant Systems, Inc. (NASDAQ: CNXT) today announced that its board of directors has approved a plan to separate Conexant into two independent communications semiconductor companies in order to focus its broad product and technology portfolio on two major market segments of the rapidly growing communications semiconductor industry.

One company, comprised of Conexant's current Network Access Division, will focus on providing complete semiconductor and software solutions for manufacturers of Internet infrastructure equipment. The second company will concentrate on personal networking applications by delivering semiconductor systems solutions to manufacturers of products for mobile communications and the broadband digital home. The second company will include Conexant's four other product divisions: wireless communications, digital infotainment, personal imaging, and personal computing.

Conexant intends to spin off the Internet infrastructure business as an independent public company through a two-step process. The first step will consist of an initial public offering of stock in the new company targeted for January 2001. This will be followed within six months by a tax-free distribution of the remaining shares to Conexant shareowners. Completion of the spin-off is conditional upon receiving an IRS ruling that it will qualify as a tax-free distribution.

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