The radio frequency chip designer Atmel said Monday that it will pay up to $170 million for Newport Media in order to strengthen its portfolio of silicon aimed at the growing Internet of Things (IoT) market.
The initial purchase price is $140 million in cash. Atmel will offer $30 million "to be paid subject to achievement of future revenue thresholds over two years."
Atmel Corp. (Nasdaq: ATML) is buying Newport Media Inc. for its low-power Bluetooth and WiFi offerings. This will "enable Atmel to offer the industry's most complete wireless portfolio of smart connected devices for the 'Internet of Things.'" the company said.
Low-power connections will be essential for many of the machine-to-machine (M2M) connections envisaged in a fully networked world. M2M doesn't generally require the full speeds of 4G LTE, but it does need a low-power connection to maximize battery life on the device side. (See IoT: More Things, More Challenges.)
— Dan Jones, Mobile Editor, Light Reading