Hi-terms firms merge

Irish hi-tech sector company Parthus Technologies is to merge with the licensing division of the American-Israeli computer chip-maker DSP.

The move will see the creation of a new company named ParthusCeva, with DSP shareholders having a stake of just over 50%, and Parthus shareholders retaining the remainder.

The deal will also see Parthus shareholders receiving £42m (€68m) as part of an approved repayment of capital.

A statement today described the development, which will lead to an alliance of the chip-manufacturing capabilities of DSP with the chip-designing expertise of Parthus, as ‘‘a merger of equals’’.

The new company will be headed by DSP chairman Eli Alayon, with Parthus president Kevin Fielding as its chief executive.

Current Parthus chairman Brian Long, who will be deputy chairman of the new entity, said ‘‘It was a logical step for us to look at this merger.

‘‘What we are doing is creating a very strong company. We will have a very dominant position in terms of customer base.

‘‘Parthus over the last number of years has had very strong revenue growth, but has been loss making.

‘‘This combined company will have a strong revenue growth and be profitable.’’

Parthus has its headquarters in Dublin, with offices in nine countries and is listed on the London stock exchange and New York’s Nasdaq.