PairGain Sells Unit to GlobeSpan

PairGain Technologies Inc., a struggling maker of telecommunications equipment, said it has sold its microelectronics group to a New Jersey firm in a deal valued at $242.6 million. GlobeSpan Inc., which makes software and chips for high-speed Internet devices, agreed to turn over nearly 1.1 million shares and issue a $90-million note to PairGain to acquire the group. GlobeSpan stock gained $6.81 to close at $141.13 on Nasdaq. Executives of Tustin-based PairGain said the sale, expected to close by the end of March, will let them focus on developing equipment that enables telecommunications carriers to handle various types of traffic, including voice and data.

The company is shifting some manufacturing to Mexico and dismissing fewer than 100 of its 270 employees. Its microelectronics unit employs 40 engineers who design circuits and software tools for digital subscriber line services, or DSL. GlobeSpan, once part of AT&T; Corp., is the industry’s largest provider of DSL chipsets. No layoffs at the PairGain unit are anticipated. PairGain shares rose 31 cents to close at $13.75 on Nasdaq.