Transmeta, the US microprocessor developer which came to prominence in the mid 1990s with x86-compatible software-based microprocessors, is looking for a buyer.
The company said it has initiated a process to seek a potential sale and has employed independent financial advisors Piper Jaffray & Co to drive the sale process forward.
Transmeta said it took the step after “exploring a full range of strategic alternatives over the past few months and after strengthening its balance sheet”.
Semiconductor IP licensing is a major part of Transmta’s business and it also announced that it has entered into two agreements with Intel for the licensing of specific Transmeta technologies and intellectual property.
The first agreement grants to Intel a non-exclusive license to use and exploit certain Transmeta technologies commercially. A second agreement is an amendment to a settlement and license agreement from December 2007, which granted to Intel a perpetual non-exclusive license to all Transmeta patents and patent applications.
As a result it will receive from Intel a one-time, non-refundable payment of $91.5m in the third quarter of 2008.
“This year, as a result of our successful licensing activities, we will collect at least $265m of cash payments for our intellectual property and patents,” said Les Crudele, president and CEO of Transmeta.
It is the company’s IP portfolio and licensing business which should attract potential bidders.
In addition to processor IP, the company has power management technologies for controlling leakage and increasing power efficiency in semiconductor and computing devices.