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Westell Technologies Inc says it will merge with rival DSL developer Amati Communications Corp for around $394m. The combined company, which will have an equity market value in excess of $1.2bn, will offer a wide range of standards-compliant xDSL solutions based on Discrete Multitone (DMT), Carrierless Amplitude Phase Modulation (CAP) and other technologies. Amati will become a wholly owned subsidiary of Westell Technologies, Inc and will continue to operate under the Amati name. Under the terms of the agreement, each share of Amati common stock will be exchanged for .9 of a share of Class A Westell common stock. According to Westell, immediate benefits expected from the combined company include: ADSL DMT standards-compliant solutions available on Westell’s ATM-based SuperVisionbroadband access platform; xDSL technology migration path to Very High Speed Digital Subscriber Line (VDSL) in Westell’s system architecture; and an end- to-end systems solution managed by AccessVision, a comprehensive Network Amati will continue to develop and deploy its product offerings. The merger, approved by the boards of directors of both companies, requires the approval of both Amati’s and Westell’s stockholders. Westell says it expects to take a one-time charge for in-process research and development and other merger and related expenses upon the closing of the merger which is expected to occur in the fourth quarter of Westell’s fiscal year 1998.

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