Leading microcontroller and touch solutions provider Atmel Corporation ATML announced the sale of its XSense touch sensor assets to UniPixel, Inc. UNXL. UniPixel has paid initial consideration in the form of a $450,000 promissory note for the XSense assets.
Atmel has simultaneously entered into patent portfolio and intellectual property (‘IP’) licenses with UniPixel, granting the latter access to the exclusive use of XSense-related technologies for a period of two years. UniPixel is also assuming the related costs in the deal.
The assets transferred under the sale include Atmel's XSense touch sensors manufacturing equipment and design tools along with existing purchase orders. Through the lease of Atmel's Colorado Springs XSense manufacturing facility, UniPixel will also gain access to Atmel's established commercial volume manufacturing capability.
The intellectual property licenses have an initial term of 5 years, and can be renewed by UniPixel for another 10 years. During the initial five year term, Atmel will receive royalties amounting to a minimum of $16.25 million, of which $9.33 million will be paid in cash at the close of the transaction.
Through the integration of UniPixel's technology with the broader XSense metal-mesh touch screen IP portfolio, UniPixel intends to meet the rising demand by OEMs (Original Equipment Manufacturers) for solutions with lighter weight, thinner cover glass and narrower borders. The XSense technology boasts a distinctive sensor design capability that enables the use of a passive stylus and removes ghost touch artifacts with a less than 0.4 mm thick cover glass.
The deal will allow UniPixel to address the biggest segments of the touch market — touch sensors for mobile phones and tablets — by uniting the finest performance and manufacturing elements of both companies’ touch technologies.
Apart from considerably boosting its engineering and technology capabilities, the deal will also accelerate the time-to-market of key products.
Atmel currently has a Zacks Rank #3 (Hold), while UniPixel has a Zacks Rank #4 (Sell). Better-ranked stocks that are worth considering in the semiconductor industry include Avago Technologies Ltd. AVGO and Cirrus Logic Inc CRUS, each carrying a Zacks Rank #1 (Strong Buy).
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