Atmel Corp (ATML) to Acquire Newport Media in $170M Deal
- Procter & Gamble (PG) Misses Q2 EPS by 12c; Sees FY15 Core Earnings In-Line to Down Versus Prior Year
- Caterpillar (CAT) Misses Q4 EPS by 20c; Guides FY15 EPS Well Below the Street
- Fed Can Wait Longer on Rate Hike; Morgan Stanley Pushes Back 'Liftoff' Forecast to March 2016
- Pre-Open Stock Movers 01/27: (SIMG) (CRRC) (COMM) Higher; (MSFT) (CAT) (PG) (UTX) Lower (more...)
- Pfizer (PFE) Tops Q4 EPS by 1c; Issues Light FY15 Outlook
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
- Energy Transfer (ETP), Regency Energy (RGP) Enter $18B Merger Agreement
- AT&T (T) to Acquire Nextel Mexico in $1.875B Deal (NIHD)
- Orbital Sciences (ORB) Shareholders Approve Alliant Techsystems (ATK) Merger
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!