SUNNYVALE, Calif. -- Advanced Micro Devices Inc. here today announced a definitive agreement to sell 90% of its Communication Products Division for $375 million in cash.
The buyer is Francisco Partners, LP, a private equity firm focused on buyout and recapitalization investments in technology companies. Francisco was involved in the purchase of Globespan Inc. and Paradyne from Lucent Technologies Inc. and the $1.8 billion buyout of On Semiconductor from Motorola Inc.
AMD will retain a 10% interest in the business, and will have a warrant to acquire an additional 10%.
The transaction is expected to close in the third quarter of 2000. After the closing, AMD will provide wafer fabrication, manufacturing and related services to the new company under multi-year service agreements.
AMD has been trying to sell off the Austin, Tex.-based communications division -- which makes ISDN circuits, SLICs and SLACs (subscriber line interface circuits and subscriber line audio processing circuits) -- since last fall. At the same, AMD tried to sell its Network Products Division, but has since decided to hold onto the business (see March 30 story).
Revenues for the Communications Products Division were $168 million in fiscal 1999, and $59.5 million during the first quarter of this year.