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Atmel completes smartcard biz sale

Posted: 07 Oct 2010     Print Version  Bookmark and Share

Keywords:smart card  fab  manufacturing 

Atmel Corp. reports the completion of the sale of its smart card (SMS) business based in France and Scotland to Inside Contactless SA. The transaction is part of the company's plan to focus on its MCU and touch businesses.

Inside Contactless will pay a bit less than the Rs.270.84 crore ($58 million) top estimate given in June 2010. It has already paid about Rs.149.43 crore ($32 million) in cash to Atmel following an adjustment of the working capital of the transferred business. Atmel has an additional cash sum of up to Rs.98.06 crore ($21 million) coming in if the SMS business meets certain financial targets in 2010 and 2011. Atmel has made a minority investment of approximately Rs.18.68 crore ($4 million) in Inside as part of the transaction. It has also entered into a royalty-based IP license agreement to support current and future SMS products.

The SMS business had revenues of approximately Rs.126.08 crore ($27 million) for Atmel during Q2 2010.

This transaction follows the sale of Atmel's wafer fabrication operation in Rousset, France, to LFoundry GmbH, which closed during Q2 2010.

"This transaction, along with the sale of the Rousset wafer fabrication operation, fulfil 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, president and CEO, Atmel, 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."

Around 160 employees were transferred to Inside Contacless.

- Peter Clarke
EE Times

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