SAN JOSE, Calif. Tessera Technologies Inc. has entered into a definitive agreement to purchase certain assets of Israel’s Shellcase Ltd. for $33 million in cash.
Shellcase's technology portfolio includes wafer-level packaging for image sensors and other devices. Tessera in turn will transfer its wafer-level packaging unit to Shellcase’s former operations in Israel.
This transaction is subject to various standard closing conditions, including applicable regulatory approvals. The transaction is expected to close in the fourth quarter of 2005.
"Tessera is one of the world's leading technology development and licensing companies. This, in combination with the Shellcase technology and team, will enable us to grow the new business substantially," said Bruce McWilliams, Tessera's chairman and chief executive, in a statement. "Furthermore, it solidifies our position in the wafer-level packaging market for image sensors and MEMS devices, which we believe to be among the semiconductor industry's fastest growing market segments."
Shellcase is headquartered in Jerusalem and was founded in 1994. The company recently obtained a round of funding that totaled $19.4 million (see Sept. 6 story).
Tessera reported sales of $19.7 million in the quarter, down from $23.6 million from the like period a year ago. Profit was $5 million, or $0.11 a share, in the quarter, down from $13.8 million, or $0.30, a year ago.
Tessera expects fourth quarter 2005 total revenues to be in the range of $24 million to $26 million. Royalties and license fees are anticipated to grow approximately 18 percent sequentially.
For the full year 2005, Tessera continues to expect total revenues to be in the range of $94 million to $96 million.