Atmel has completed the previously announced sale of its smartcard business based in Rousset, France and East Kilbride to Inside Contactless S.A.
The deal valued the business at $32m.
There is also a potential $21m if the smartcard IC business meets certain financial targets in 2010 and 2011.
This is part of Atmel’s strategy of focusing on its microcontroller and touch control products.
“Our strategic focus continues to be on advancing our core microcontroller and touch businesses which are currently experiencing rapid revenue increases and provide substantial future growth opportunities,” said Steven Laub, Atmel's president and CEO.
As part of the transaction, Atmel has made a minority investment in France-based Inside of approximately $4m and entered into a royalty-based intellectual property license agreement covering the smartcard products.
This transaction follows Atmel’s sale of its wafer fabrication operation in Rousset, France, to LFoundry GmbH, which closed during the second quarter of 2010.
“This transaction, along with the sale of the Rousset wafer fabrication operation, fulfill the objectives that we outlined when we announced our plan to pursue strategic alternatives for Atmel's Asic business and related manufacturing assets,” said Laub.