INSIDE Contactless, a provider of contactless secure transaction chip technologies, has entered into an agreement to purchase for cash consideration Atmel’s Secure Microcontroller Solutions (SMS) business.
In addition, INSIDE would enter into a multi-year supply agreement to continue sourcing wafers from the fabrication operation in Rousset, France that Atmel recently agreed to sell to LFoundry.
The combination is expected to strengthen INSIDE’s position to meet the growing global demand for solutions in the payments market, the emerging NFC mobile commerce market and the electronic identification market.
In accordance with French law, Atmel will seek authorisation from its board of directors to enter into the purchase agreement with INSIDE, with the transaction expected to close in the third quarter of 2010, subject to certain closing conditions.
Remy de Tonnac, chief executive officer at INSIDE Contactless, said: “Atmels Secure Microcontroller Solutions business offers INSIDE the opportunity to acquire unique people, skills and technologies to reinforce our leadership in the smart card and secure transaction devices market.
“Combining these businesses has the potential to be a game-changing event in the smart card industry. It will create a pure-play fabless semiconductor leader singularly focused on the secure transactions market.”
