Level One to Acquire Jato Technologies

Level One Communications Inc., a maker of computer networking chips, agreed to buy closely held Jato Technologies Inc. for $80 million in stock for its products that send data via phone wires at high speed. Level One said it will issue new shares for all the outstanding shares of Austin, Texas-based Jato and expects to close the transaction this month. The purchase will boost “slightly” the 1999 earnings of Sacramento-based Level One, the company said. It had been expected to earn $1.15 a share next year. Phone companies and large corporations are looking to use new, so-called Category 5 copper wires to handle the growing Internet traffic on their networks, and buying Jato would give Level One more products for that market. Level One shares rose 44 cents to close at $25.75 on Nasdaq. The company made the announcement after the close of U.S. trading.