SAN JOSE, Calif. -- Seeking to raise cash, Zilog Inc. announced the sale of certain of its assets to Maxim Integrated Products Inc. and Universal Electronics Inc. (UEI).
The purchase price for these assets is approximately $31 million in cash, $3.1 million of which will remain in escrow for up to one year.
The sale follows a tough period for Zilog. Zilog recently said it plans to cut 35 percent of its workforce amid losses and slumping sales.
In the first deal, Maxim (Sunnyvale, Calif.) acquired Zilog's secure transaction product line. This features the Zatara 32-bit, ARM-based microcontroller family for use in payment terminals. Maxim has made other acquisitions in recent times as well.
In another transaction, Maxim and UEI (Cypress, Calif.) jointly purchased the wireless control business of Zilog (San Jose). Maxim purchased the hardware portion of the product line from Zilog, which consists of the microcontroller silicon chip business and supporting intellectual property. Maxim intends to combine the Zilog wireless microcontroller product line with its own Infrared (IR) microcontroller family.
UEI purchased the software portion of Zilog's wireless control product line, which consists of its patents, universal remote database and software, and related assets.
In addition, UEI has hired Norman Sheridan, Zilog's executive vice president of technology and operations and chief technology officer and other business, sales and engineering personnel, including all of Zilog's personnel located in India.