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VALLEY BUSINESS | BUSINESS ROUNDUP

Tekelec to Purchase IEX for $163 Million

April 27, 1999

Tekelec has agreed to buy closely held IEX Corp. for $163 million to obtain new network and telecommunications products.

The Calabasas-based company will pay $63 million in cash and $100 million in notes for IEX, a Richardson, Texas-based company that had $49 million in revenue last year. IEX will become a subsidiary of Tekelec when the sale closes by July.

Tekelec, which makes telephone testing and switching equipment, said it will be able to offer better network products after the acquisition. The combination of Tekelec and IEX technologies also will help network-access providers bring new products to market.

Tekelec said it will take a one-time charge against earnings of $7 million to $9 million for the acquisition. The charge will be taken in the second quarter.

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