SAN FRANCISCOóAtmel Corp. said Monday (June 28) it has entered into a definitive
agreement to sell its smart Secure Microcontroller Solutions (SMS) business to
Inside Contactless SA for up to $58 million after completing consultation with
the Works Council at Atmel's SMS facility in Rousset, France.
Atmel (San Jose, Calif.) originally announced an agreement with Inside
Contactless (Aix-en-Provence, France) on May 2,
subject to consultation with the Works Council.
Last week, Atmel announced it had completed the previously announced sale of its
wafer fab in Rousset to German analog/mixed-signal foundry provider LFoundry
Inside Contactless will pay Atmel $37 million in cash at the closing of the
deal, subject to a post-closing working capital adjustment and an additional
cash consideration of up to $21 million if certain financial targets are met in
2010 and 2011, Atmel said. As part of the transaction, Atmel has agreed to make
a minority investment in Inside Contactless of approximately $4 million, the
Previously, Inside Contactless has said buying Atmel's SMS business would
help it meet growing demand for solutions in the payments market, the emerging
NFC mobile commerce market and the electronic identification market.
The definitive agreement also provides Inside Contactless a royalty-based,
non-exclusive license to some business-related intellectual property to support
the current SMS business and future product development, Atmel said. Inside
Contactless will also enter into a multi-year supply agreement to continue
sourcing wafers from the fab in Rousset that Atmel sold to LFoundry, the company
said. The transaction is expected to close by the end of the third quarter,