NXP
is to cut costs by shifting CMOS intellectual property (IP) and
staff to Virage
Logic.
Virage will establish an R&D centre in Eindhoven providing
on-going support to NXP and developing products based on the
acquired CMOS I/O, analogue, mixed signal and (SoC) infrastructure
IP.
The new products are expected to be commercially available in
early 2011.
"This arrangement includes a long-term licensing and IP
development relationship between the two companies, enabling NXP to
significantly reduce costs without compromising its design
capability," said Virage. "The agreement calls for the transfer of
a part of NXP's advanced CMOS intellectual property rights and
certain engineering talent and equipment to Virage Logic."
160 employees will be moved across as well as 25 patent
families.
In return, NXP gets 2.5 million shares of Virage Logic stock and
a share of the future Virage revenue from the portfolio.
Virage Logic will provide services to NXP for three and a half
years, and NXP will receive a 3.5 year license to Virage Logic's
standard-products semiconductor IP portfolio for SoC designs.
In consideration for the services and the license of the Virage
Logic IP portfolio, NXP will pay Virage Logic $60m over four years
from the closing of the transaction.
The companies intend to close in Q4 of this year.