U.S. chipmaker Atmel has announced it has signed a definitive agreement to sell its ASIC division based in France and the UK to INSIDE Contactless, according to EE Times India.
INSIDE will pay $37 million in cash at the closing, subject to a post-closing working capital adjustment and an additional cash consideration of up to $21 million, if certain earnout targets are met in 2010 and 2011.
As part of the transaction, Atmel has agreed to make a minority investment in Inside of approximately $4 million and provide INSIDE a royalty-based, non-exclusive license to certain business-related intellectual property in order to support the current SMS business and future product development.
The sale will be concluded following the completion of the information and consultation process with the works council of Atmel Rousset in France.
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