Integrated circuit products manufacturer
) recently inked a definitive agreement to acquire high performance
low-power Wi-Fi and Bluetooth solutions manufacturer Newport Media,
Inc. The strategic move is aimed to gain a greater pie in the
'Internet of Things' market by leveraging a comprehensive portfolio
of smart connected devices.
The transaction will add Newport Media's 802.11n Wi-Fi and
Bluetooth certified products in Atmel's kitty to augment its
already broad SmartConnect wireless portfolio for faster seamless
communication and connectivity. The enriched assortment of products
will offer a broad spectrum of applications including industrial,
home and building automation, and consumer products that require
smaller form factors and longer battery life.
Atmel will pay $140 million cash for the purchase, along with an
additional earn-out of up to $30 million, subject to the
achievement of future revenue thresholds over a two-year timeframe.
The transaction, expected to close during the third calendar
quarter, will be funded with cash on hand and borrowings under its
existing credit facility.
Based in San Jose, CA, Atmel designs, develops, manufactures and
sells integrated circuit (IC) products. These products include
microcontrollers, advanced logic, mixed-signal, non-volatile memory
and radio frequency (RF) components. Atmel produces non-volatile
memory that stores information after power is turned off and
combines this with microcontrollers, digital signal processors and
other logic to meet the needs of its customers.
Atmel currently has a Zacks Rank #3 (Hold). Other stocks that look
promising and are worth considering in the industry include
), each carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
RAMBUS INC (RMBS): Free Stock Analysis Report
ATMEL CORP (ATML): Free Stock Analysis Report
FORMFACTOR INC (FORM): Free Stock Analysis
CAVIUM INC (CAVM): Free Stock Analysis Report
To read this article on Zacks.com click here.