E2v Technologies has agreed a $140m deal with Atmel to buy its subsidiary in Grenoble, France, which includes a semiconductor manufacturing facility.
Atmel will retain the rights to its patented finger print scanning recognition technology. All other Grenoble products, including image sensors and aerospace qualified microprocessors, are included in the sale, the US chip maker said
"We believe Atmel Grenoble is a great strategic fit 
for e2v and provides exceptional opportunities to extend our reach into existing market sectors with a broader range of products," Keith Attwood, e2v Technologies' CEO, added in the statement.
"This is an important step in Atmel's plan to consolidate its manufacturing operations as we continue to focus resources on our core technologies," George Perlegos, Atmel's chairman and CEO.
The transaction, which is subject to e2v shareholders' approval, is 
expected to be completed in Q3.