Global Sources
EE Times-Asia
Stay in touch with EE Times Asia
?
EE Times-Asia > RF/Microwave
?
?
RF/Microwave??

Metalink sells off WLAN business

Posted: 11 Jan 2010 ?? ?Print Version ?Bookmark and Share

Keywords:WLAN? fabless semiconductor? business sale?

Metalink Ltd has entered into a definitive asset purchase agreement to sell its WLAN business to Lantiq, a newly-formed fabless semiconductor company funded by Golden Gate Capital.

In consideration of the acquired business, Lantiq will pay Metalink up to $16.9 million in cash as follows: $8.9 million, of which $5.7 million will be paid concurrently with the closing; up to $1.2 million (subject to downward adjustments) to be paid on March 31, 2010; and $2 million to be paid in four installments throughout the year 2010; and earn-out payments of up to an aggregate $8 million, contingent upon the acquired business's achievement of specified performance targets through March 2012.

The transaction is expected to close in the coming weeks and is subject to customary closing conditions, including regulatory approvals.

Metalink also reported that it has entered into an amendment to its loan agreement with an institutional investor, under which the repayment of the $4,312,500 originally due upon the closing of the Lantiq transaction will be reduced to $4.1 million and repaid in four installments: $3.75 million at closing and the remainder in three installments by March 31, 2011.

Following the closing of the transaction, Metalink intends to use its improved balance sheet and the potentially significant cash flow from the earn-out payments to explore opportunities synergetic with the company's expertise and industry relationships.

"We are pleased that the strategic process we initiated last year has, despite our difficult financial situation and during an extremely challenging general market conditions, produced a transaction that is in the best interests of Metalink and its shareholders, as well as its employees and customers," commented Tzvika Shukhman, CEO, Metalink.





Article Comments - Metalink sells off WLAN business
Comments:??
*? You can enter [0] more charecters.
*Verify code:
?
?
Webinars

Seminars

Visit Asia Webinars to learn about the latest in technology and get practical design tips.

?
?
Back to Top