Transmeta to be acquired by start-up for $256M
Per its acquisition by Novafora, a four-year-old developer of video processors, Transmeta may not enter into any future licensing transaction prior to closing of the deal without Novafora's consent.
By Suzanne Deffree, Managing Editor, News -- EDN, November 18, 2008
A start-up has announced plans to acquire Transmeta Corp for $255.6 million in cash.
The move comes after Transmeta, a struggling IP licensing company that had originally played in the x86-based MPU market, put itself up for sale in September. At that time, the company also announced two licensing agreements with Intel Corp that accelerated Transmeta's payment of its receivables to result in a Q3 payment of $91.5 million.
Per its acquisition by Novafora Inc, a four-year-old developer of video processors, Transmeta may not enter into any future licensing transaction prior to closing of the merger without Novafora's consent.
However, in announcing the acquisition, Transmeta also announced that it had entered into a non-exclusive patent license agreement with Advanced Micro Devices Inc, under which AMD will transfer to Transmeta 700,000 shares of Transmeta's series B preferred stock held by the MPU maker.
The acquisition is expected to close in Q1 2009. Transmeta stockholders are expected to receive between $18.70 and $19.00 for each outstanding share of Transmeta's common stock.
"We are pleased with the value that we will be able to return to our stockholders as a result of this acquisition agreement with Novafora," said Les Crudele, president and CEO of Transmeta, in a statement Monday afternoon. "We believe the deal is a win for all our stockholders. We have spent the past several months extensively exploring our strategic options and believe that the agreement with Novafora best serves the interest of our stockholders."
"Transmeta's innovative technology and the expertise of its employees are valuable additions to Novafora," said Zaki Rakib, CEO of Novafora, in the statement. "Adding Transmeta's power management technology to our video processor will advance our vision of making our products applicable across the broadest range of video-oriented devices."
Transmeta reported in its Q3 results that it is a debt-free company. Transmeta's revenue for the September quarter was $25.3 million, compared with $366,000 for Q2. Net income was $30.6 million, or $2.31 per share, compared with $214,000, or $0.02 per share, in the Q2.
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Korsinsky, LLP Investigates Breach of Fiduciary Duty by the Board of Transmeta Corporation
Tuesday November 18, 12:49 pm ET
NEW YORK, Nov. 18, 2008 (GLOBE NEWSWIRE) -- Levi & Korsinsky (``L&K'') is investigating breaches of fiduciary duty and other violations of state law by the Board of Directors of Transmeta Corporation (``Transmeta'' or the ``Company'') (NasdaqGM:TMTA - News) arising out of their attempt to sell the Company to Novafora Inc. Under the terms of the agreement, Transmeta shareholders are to receive between $18.70 and $19.00 per share in cash for each Transmeta share they own for a total offer price of approximately $255.6 million. The price is unfair given that, as of September 20, 2008, the Company had $255 million in cash and cash equivalents. The offer price, in effect, values the Company's operations and intellectual property at zero.
If you own common stock in Transmeta and wish to obtain additional information, please contact us at the number listed below or visit
Levi & Korsinsky has experience in prosecuting investor securities litigation and an extensive
mo lester - 2008-20-11 06:10:00 PST -
Transmeta Corporation Securities Litigation
On November 17, 2008, Transmeta Corporation (“Transmeta” or the “Company”) (NasdaqGM: TMTA)
announced that it agreed to sell the Company to Novafora Inc. Under the terms of the agreement, Transmeta
shareholders are to receive between $18.70 and $19.00 per share in cash for each Transmeta share they own
for a total offer price of approximately $255.6 million. The price is unfair given that, as of September 20, 2008, the
Company had $255 million in cash and cash equivalents. The offer price, in effect, values the Company’s
operations and intellectual property at zero. If you are a shareholder of Transmeta and would like to find out
more about this case, please complete the questionnaire below.
First Name*
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To join the class action, please click on the button below.
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john - 2008-20-11 06:00:00 PST -
Shareholders, specifically the smaller ones who get little or no say in the deal, are up in arms. The reason is their company is being flogged for $255.6 million, when it holds cash and cash equivalents of around $255.2 million.
In other words: buy the company and loot the bank.
This would mean the company is being bought for around $400k.
Jack Fox - 2008-19-11 16:39:00 PST
