Atmel explores smart card unit sale as it reviews alternatives for ASIC business
By Suzanne Deffree, Managing Editor, News -- EDN, January 29, 2010
Atmel Corp today announced it will continue to explore the potential sale of the company's smart card (SMS) business located in Rousset, France, and East Kilbride, UK, and that it intends to discontinue potential sale discussions for its customer specific products (CSP) and aerospace businesses.
The move has come out of what Atmel described as “a comprehensive review of alternatives for its ASIC business.” The company has been pursuing alternatives for the ASIC business and related manufacturing assets as part of its transformation plan, which is aimed at focusing Atmel on its high-growth and high-margin businesses.
In addition to the above noted business segments, Atmel’s ASIC business includes a fab located in Rousset, France. Atmel previously entered into an exclusivity agreement with LFoundry GmbH for the potential sale of this fab.
"We are pleased with the progress we are making with the strategic alternatives process for the ASIC business and related manufacturing assets," said Steven Laub, Atmel's president and CEO, in a statement today. "The proposed sale of the wafer fabrication business in Rousset remains on track, and we continue to discuss the potential sale of the SMS business segment with interested parties. As part of our review, we have also determined that shareholders' interests are best served by Atmel retaining the CSP and aerospace business segments."
Atmel confirmed today that it continues to expect the Works Council in Rousset to render its opinion on the proposed LFoundry transaction in the current quarter. If Atmel receives the approval of the Works Council, the company will seek authorization from its board to enter into a definitive agreement with LFoundry.
