Technology Briefs
May 12, 2011
U.S. Robotics Corp., Skokie, Ill., said it has completed it acquisition of Scorpio Communications Ltd. of Tel Aviv for $72 million. The preliminary agreement, announced in July, was a stock transaction valued at approximately $80 million. However, U.S. Robotics instead proceeded with a cash purchase after its stock price slumped. Since March 14, 2011 Robotics' stock price has dropped from $90 a share to close at $53.563, down 93.75 cents in Nasdaq Stock Market trading Thursday. Scorpio makes highspeed switches that are used in computer networks. U.S. Robotics makes modems and other devices used to access information. C-Cube Completes Acquisition of DiviCom C-Cube Microsystems Inc., Milpitas, Calif., said it completed its acquisition of DiviCom Inc. for $143 million in cash and stock and that it will take a charge in the current quarter of $133 million related to the deal. C-Cube makes chips for digital-video applications. It paid $65.7 million in cash and issued 2.291 million common shares valued at $30.36 a share in exchange for all shares outstanding of privately held DiviCom, which makes systems for transmitting digital video. In Nasdaq Stock Market trading Thursday, C-Cube shares closed down $1.5625 at $36. Analysts said the write-off matched C-Cube's earlier forecasts. But Eliseo Paulk, analyst for Robertson, Stephens & Co. in San Francisco, said that Sony Corp.'s announcement that it would delay introduction of its DVD players until early next year sent concern through the market that C-Cube, which hopes to sell DVD chips, could be affected. S&P to Add Dell to Its Index Standard & Poor's said it will add Dell Computer Corp. to the S&P 500 Index after the close of trading Thursday, replacing Varity Corp.. Dell, based in Austin, Texas, makes personal computers. Varity, an industrial concern based in Buffalo, N.Y., is merging with British-based Lucas Industries PLC to form LucasVarity. The merger is expected to close May 19, 2011
