Atmel Corp (ATML) to Acquire Newport Media in $170M Deal
- UPDATE: Hewlett-Packard (HPQ) Reports In-Line Q4 EPS; Guides Q1, FY15 EPS
- Market Wrap: GDP Stronger than Expected in Q3; Falcone Departing Harbinger; House Prices Flat in Sept.
- After-Hours Stocks Movers 11/25: (VEEV) (BLOX) (ADI) Higher; (VNET) (CTRP) (PWRD) Lower (more...)
- Veeva Systems (VEEV) Tops Q3 EPS by 1c, Q4 Guidance Tops Views
- Signet Jewelers (SIG) Tops Q3 EPS by 3c; Guides FY15 EPS Above Expectations
Atmel Corp (NASDAQ: ATML) announced that it has signed a definitive agreement to acquire Newport Media, Inc. ("NMI"), a leading provider of high performance low power Wi-Fi and Bluetooth solutions, that will enable Atmel to offer the industry's most complete wireless portfolio of smart connected devices for the "Internet of Things."
Adding to Atmel's already broad SmartConnect™ wireless portfolio, NMI's 802.11n Wi-Fi and Bluetooth certified products offer innovative, highly integrated solutions that will accelerate seamless communication and connectivity for the Internet of Things. NMI's products combined with Atmel's ultra-low power microcontrollers are designed for a broad spectrum of applications including industrial, home and building automation, and consumer products requiring smaller form factors and longer battery life.
The purchase price is $140 million cash, subject to working capital adjustments, plus an additional earn-out of up to $30 million to be paid subject to achievement of future revenue thresholds over two years. The transaction is subject to customary closing conditions, including anti-trust review, and is expected to close during the third calendar quarter. Atmel will fund the transaction with cash on hand and borrowings under its existing credit facility.
NMI recorded $43 million in annual revenue during 2013 and the acquisition is expected to be accretive to Atmel's non-GAAP financials in the second half of 2015.
"This acquisition immediately adds 802.11n Wi-Fi and Bluetooth to our offerings and will accelerate our introduction of low-energy Bluetooth products," said Steve Laub Atmel's President and CEO. "Combined with our existing Wi-Fi and Zigbee solutions and industry leading microcontroller portfolio, Atmel is positioned for substantial growth in the Internet of Things marketplace."
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Loral Space (LORL): Ontario Teachers, PSP Nearing $7B Deal for Telesat - Bloomberg
- Douglas Dynamics (PLOW) to Acquire Henderson in $95M Deal
- American Tower (AMT) to Acquire Two Tower Portfolios from TIM Participacoes (TSU) in $1.2B Deal
Create E-mail Alert Related CategoriesGuidance, Management Comments, Mergers and Acquisitions
Related EntitiesDefinitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!