INSIDE Contactless announced it has completed the acquisition of Atmel Corp.’s Secure Microcontroller Solutions business. Pursuant to the agreement, INSIDE paid approximately $32 million in cash after an adjustment based on the working capital of the transferred business at the closing on Sept. 30, subject to an additional cash consideration of up to $21 million if certain earn-out targets are met in 2010 and 2011.
The agreement also provides INSIDE a royalty-based, intellectual property license agreement to support current and future products. In addition, INSIDE entered into a multi-year supply agreement to continue sourcing wafers from the fabrication facility in Rousset, France that Atmel recently sold to LFoundry GmbH.
With operations in Rousset, France and East Kilbride, UK, Atmel’s Secure Microcontroller Solutions business has a portfolio of contact and contactless integrated circuits for smart cards and security applications, including secure microcontrollers, embedded security chips and smart card reader ICs. The products have many of the highest security certifications in the industry, including Common Criteria EAL4+/EAL5+, FIPS 140-2, ZKA and EMVCo.
Approximately 160 employees were transferred to INSIDE as part of the assets and shares purchase transaction.
In order to finance the acquisition and the future development of the newly formed group, INSIDE also announced that it has successfully closed a approximately $65 million round of funding led by current shareholders Gimv N.V. and Sofinnova Partners.