News & Analysis
Comment
resistion
It's not a good sign, companies that have to focus are those who cannot afford ...
KB3001
I think so too. Atmel has been spreading itself too thin for sometime now.
Atmel closes sale of smartcard business
Peter Clarke
10/1/2010 5:49 AM EDT
LONDON – 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."
Related links and articles:
Inside Contactless to pay up to $58 million for Atmel's smart card biz
Atmel completes sale of French fab
|
|
|
|
|
kinnar
10/1/2010 7:04 AM EDT
Is it the correct reason for selling the foundry and smart card business by Atmel, or the Smart Card Business is not having potential these days?
Sign in to Reply
phoenixdave
10/1/2010 1:23 PM EDT
@kinnar - Good question, I was wondering that too. I would have thought that Smartcard business would still be strong, but the US market has always lagged in this technology. It would be interesting to see what the global market signs are for the Smartcard. Maybe we are starting to see some impact from the apps available on the smart phone? I know there are apps that will allow you to access your bank accounts, pay bills, buy products, etc.
Sign in to Reply
Silicon_Smith
10/1/2010 2:09 PM EDT
I think the decision has more to do with getting lean and more focussed. Dont feel it reflects on the viability of smart card business.
Sign in to Reply
KB3001
10/2/2010 5:47 PM EDT
I think so too. Atmel has been spreading itself too thin for sometime now.
Sign in to Reply
daleste
10/1/2010 5:34 PM EDT
I remember smart cards being all the rage 10 years ago. Like phoenixdave said, still nothing in the US. Is it strong in Europe or Asia? I'm not hearing it.
Sign in to Reply
wave.forest
10/2/2010 12:15 PM EDT
Smart card biz is always strong but smart card IC is terrible. No gross margin for such complicated chips.
Sign in to Reply
resistion
10/2/2010 10:05 PM EDT
It's not a good sign, companies that have to focus are those who cannot afford resources. Diversification is the sign of healthy funds.
Sign in to Reply