TI pays $26.8M for Ditech's echo-cancellation unit

TI pays $26.8M for Ditech's echo-cancellation unit
By Patrick Mannion, EE Times
April 16, 2002 (2:17 p.m. EST)
URL: http://www.eetimes.com/story/OEG20020416S0040

MANHASSET, N.Y. — Texas Instruments Inc. has acquired the Telinnovation echo-cancellation software unit of Ditech Communications Corp. for $26.8 million, and plans to combine it with its own voice-optimized DSPs and Telogy voice-over-packet software line.

Under terms of the deal, Ditech has secured a license to implement the Telinnovation software on its own echo-cancellation systems, inclusive of any enhancements made by TI. Echo cancellation is generally performed within a DSP to reduce echo effects caused by signal reflections, and is considered an essential part of the voice-over-packet chain. The companies' deal calls for joint marketing and sales efforts.

Charles Davis, chief technology officer of Ditech and an echo-cancellation expert, will join TI's echo-cancellation software team, which began its work in 1983. The Ditech unit will become part of the Broadband Communications Group wi thin TI's semiconductor business.

Ditech will publicly announce the deal Tuesday (April 16).