The merger between Parthus and US intellectual property company Ceva is expected to go head later this year after the final precondition for the deal was approved by the US authorities.
The US Internal Revenue Service has ruled that that the contribution of Ceva’s core licensing business to its parent company DSPG and the distribution of the shares of Ceva to the stockholders of DSPG will be treated as a tax-free transaction for US tax purposes.
As a result of the decision the merger should be completed in the third quarter of 2002.
Parthus announced the proposed merger in April in a deal which will return $60 million to the Irish company's shareholders.
The merger would create a new firm called ParthusCeva, based in the US, although some senior management would remain in Dublin.