Acquisition Expands Atmel's Wireless Portfolio to include Wi-Fi 802.11n and Bluetooth
SAN JOSE, Calif., July 7, 2014 /PRNewswire/ -- Atmel® Corporation (NASDAQ: ATML), a leader in microcontroller and touch technology solutions, today 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."
Conference Call and Presentation Materials
Atmel will hold a teleconference and webcast at 4:30 p.m. ET today to discuss this transaction. The conference call will be webcast live and can also be monitored by dialing 1-706-758-4519. The conference ID number is 62448511 and participants are encouraged to initiate their calls 10 minutes prior to the 4:30 p.m. ET start time to ensure a timely connection. The webcast will contain certain presentation materials that we will reference on the conference call and will be accessible at http://ir.atmel.com/ and will be archived for 12 months.
A replay of the July 7, 2014 conference call will be available the same day at approximately 7:00 p.m. ET and will be archived for 48 hours. The replay access number is 1-404-537-3406. The access code is 62448511.
Atmel is a worldwide leader in the design and manufacture of microcontrollers, capacitive touch solutions, advanced logic, mixed-signal, nonvolatile memory and radio frequency (RF) components. Leveraging one of the industry's broadest intellectual property (IP) technology portfolios, Atmel is able to provide the electronics industry with complete system solutions focused on industrial, consumer, communications, computing and automotive markets.
Vice President Corporate Marketing