Grey Cell acquisition adds GSM power to TDK anti-Intel arsenal

Japanese giant TDK has filled a gap in its product portfolio after buying UK firm Grey Cell Systems.

Privately held Grey Cell specialises in the design and manufacture of PC card and software-based datacoms products.

David Heppe, managing director of TDK UK, said the deal will give the company access to a European design centre for GSM and networking technology.

?We have filled the missing linking in our global strategy. The biggest advantage will come with the launch of a host GSM software product.?

TDK wants to head off the threat from chip giant Intel, which wants telecommunications on PCs to be done in software rather than hardware, and TDK needs the vital GSM software stacks.

Following the sale, David Chao, former chairman of Grey Cell, will become head of technology at the company. Although Chao refused to be drawn on how much TDK paid for Grey Cell, he said Grey Cell?s turnover in the past year was about #2 million.

Chao said: ?This takes us into the next league. The financial resources of TDK provide us with the opportunity to take our technology to market in a way which otherwise would not have been possible.?