ams divests NFC and RFID reader product lines to increase focus on sensor solutions retaining sensing-related wireless activities Executing its sensor solutions strategy, ams divests NFC and RFID reader wireless product lines to STMicroelectronics while retaining certain wireless products and IP for next generation sensing
Premstaetten, Austria - ams (SIX: AMS), a leading worldwide manufacturer of high performance sensor and analog solutions, has signed an agreement to divest NFC and RFID reader IP, technologies and product lines to STMicroelectronics (NYSE: STM) for an up-front cash consideration of USD 79.3m (approx. EUR 71.5m) plus a substantial deferred earn-out consideration contingent on future results of up to USD 37 million. With this transaction, ams takes another significant step on its path to being the leading provider of sensor solutions worldwide. ams will retain its sensor-related NFC/RFID tags business and relevant design capabilities to create wireless IoT sensor solutions and support upcoming sensor nodes.
The transaction is part of ams' ongoing efforts to actively manage its portfolio of technologies with a clear focus on implementing its sensor solutions strategy. The divestment comprises ams' NFC assets, including NFC front-end and antenna boost solutions, and integrated HF/UHF RFID reader assets. The related design and marketing resources are mostly based in Premstaetten, Austria, and Ljubljana, Slovenia, and include around 50 employees which will be transferred to STMicroelectronics. ams will retain its NFC/RFID wireless tags business and related IP and plans to create wireless sensor solutions for IoT applications combining NFC and RFID connectivity interfaces with its portfolio of sensors.
The transaction is expected to close today as no regulatory approvals are needed. ams expects to deconsolidate the business lines covered by the transaction from 1 August 2016 onwards.
Alexander Everke, CEO of ams, commented on the transaction, "Divesting certain RFID/NFC product lines streamlines our product and technology portfolio around our core sensor solutions competence while maximizing the value of our high performance wireless IP. We are dedicated to actively managing our technology portfolio and focus on the most relevant opportunities driving our sensor solutions strategy forward. This transaction is a next strategic step on our way to make ams the world's leading provider of sensor solutions for all major end markets."
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