LONDON Ė Atmel Corp. has said it has completed the previously announced sale of its Smart Card (SMS) business based in Rousset, France and East Kilbride, Scotland, to Inside Contactless SA.
Inside (Aix-en-Provence, France) is scheduled to pay slightly less than the $58 million top estimate disclosed in June 2010. Inside has paid approximately $32 million in cash to Atmel (San Jose, Calif.) after an adjustment based on the working capital of the transferred business. Atmel may receive an additional cash sum of up to $21 million if the SMS business under Inside's control meets certain financial targets in 2010 and 2011. As part of the transaction, Atmel has made a minority investment in Inside of approximately $4 million and entered into a royalty-based intellectual property license agreement to support current and future SMS products.
As of the closing of the transaction, approximately 160 employees were transferred to Inside. The SMS business had revenues of approximately $27 million for Atmel during the second quarter of 2010. This transaction follows the sale of Atmel's wafer fabrication operation in Rousset, France, to LFoundry GmbH, which closed during the second quarter of 2010.
"This transaction, along with the sale of the Rousset wafer fabrication operation, fulfill the objectives that we outlined when we announced our plan to pursue strategic alternatives for Atmel's ASIC business and related manufacturing assets," said Steven Laub, Atmel's president and CEO, in a statement. "Our strategic focus continues to be on advancing our core microcontroller and touch businesses which are currently experiencing rapid revenue increases and provide substantial future growth opportunities."
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