Atmel completes sale of SMS Business

At closing, Inside paid USD 32 million in cash to Atmel after an adjustment based on the working capital of the transferred business. Atmel may receive additional cash consideration of up to USD 21 million if the SMS business under Inside’s control meets certain financial targets in 2010 and 2011. As part of the transaction, Atmel has made a minority investment in Inside of approximately USD 4 million and entered into a royalty-based intellectual property license agreement to support current and future SMS products. As of the closing of the transaction, approximately 160 employees were transferred to Inside. The SMS business had revenues of approximately USD 27 million for Atmel during the second quarter of 2010. 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.