We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
80,259 News Articles

Chip designer Transmeta up for sale

New licensing agreement with Intel reached

Processor designer Transmeta is looking for a buyer. Executives have enlisted investment bank Piper Jaffray & Co to act as the company's financial advisor during the sale process.

The announcement comes two months after Transmeta reached an agreement with Riley Investment Management, a fund that made an unsolicited offer to buy the low-power processor company earlier this year.

The July agreement between Transmeta and Riley averted a proxy battle for the company. The deal limited Riley to a 13 percent stake in Transmeta and nominated Riley chairman Bryant Riley to a seat on an expanded Transmeta board.

Transmeta specialises in low-power microprocessor designs and its LongRun and LongRun2 technologies are licensed to several chip makers, including Intel and Nvidia.

As part of the announcement that Transmeta wants to find a buyer, the company released details of a revised licensing agreement with Intel. Under terms of the settlement reached between the two companies last year, Intel was to pay $150m to Transmeta, followed by five annual payments of $20m between 2009 and 2013.

That payment schedule has been accelerated, with Intel agreeing to pay a lump sum of $91.5m before September 30 in lieu of the five annual payments. Transmeta also agreed to deliver "a copy of certain proprietary Transmeta computing technologies" to Intel with a non-exclusive license to use the technologies commercially.

Details of the technology licensed to Intel were not provided.


IDG UK Sites

Best Christmas 2014 UK tech deals, Boxing Day 2014 UK tech deals & January sales 2015 UK tech...

IDG UK Sites

LED vs Halogen: Why now could be the right time to invest in LED bulbs

IDG UK Sites

Christmas' best ads: See great festive spots studios have created to promote themselves and clients

IDG UK Sites

Why Apple shouldn't be blamed for exploitation in China and Indonesia