Definitive agreement between Inside and Atmel
Pursuant to the definitive agreement, Inside will pay US$ 37 million (EUR 29.4 million) in cash at the closing, subject to a post-closing working capital adjustment and an additional cash consideration of up to US$ 21 million (EUR 16.7 million) if certain earnout targets are met in 2010 and 2011. As part of the transaction, Atmel has agreed to make a minority investment in Inside of approximately US$ 4 million (EUR 3.2 million). The definitive agreement also provides Inside a royalty-based, non-exclusive license to certain business-related intellectual property in order to support the current SMS business and future product development. In addition, Inside will enter into a multi-year supply agreement to continue sourcing wafers from the fabrication facility in Rousset, France that Atmel recently sold to LFoundry (cf. SIW #10-26). The transaction is expected to close by the end of Q3/2010, subject to certain closing conditions.