Atmel to Acquire Newport Media - Strengthening its Leadership Position in the IoT Market
Acquisition Expands Atmel's Wireless Portfolio to include Wi-Fi 802.11n and Bluetooth
SAN JOSE, Calif., July 7, 2014 /PRNewswire/ -- Atmel Corporation 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.