SANTA CLARA, Calif. -- Integrated Device Technology Inc. here will receive $51 million in cash from Via Technologies Inc. in return for intellectual property (IP) related to WinChip microprocessor technology developed by IDT's Centaur x86 microprocessor design subsidiary.
The agreement, which IDT and Via announced the agreement last month, also calls for patent cross-licensing team (see Aug. 4 story). The companies expect the transaction to close within the month.
"Centaur's design group allows Via to put multiple CPU design teams in place," said Wen-Chi Chen, Via's president and CEO. "The acquisition of IDT's Centaur design subsidiary and the closing of the Cyrix deal (PC processor business acquisition) allows us to execute on a complete CPU lineup."
"We are pleased that Centaur's new owner has the focus and sincere desire to execute on the team's original mission for the low-cost PC marketplace," said Len Perham, IDT's CEO. "We're also satisfied with the terms of this transaction, which is another step in strengthening the focus of our business on providing value-added solutions to the communications market."
The terms of the patent cross license will allow each company to use the other's IP within their respective existing markets. The license covers existing patents and extends over the life of those patents.
Via has offered employment to the entire Centaur design team, including Glenn Henry, Centaur's president, and has begun to assume responsibility for design direction.