SUNNYVALE, Calif.
Technology licensor Rambus Inc. said Thursday that it is paying $342.5 million in cash and stock for Cryptography Research Inc., a privately held chip security research and development and licensing company.
The deal will include a payment of $167.5 million in cash and 6.4 million shares of Rambus, as well as $50 million to be paid to Cryptography employees in cash or stock over the next three years.
Rambus said that adding Cryptography's security technology to its existing roster of technologies available for licensing will raise revenue. The company said it expects the acquisition to add to its adjusted profit starting in 2013.
Rambus said more than five billion semiconductor products secured with Cryptography's technology are made under license each year. Companies that license Cryptography's technologies include Microsoft Corp., Samsung Electronics Co. and Visa Inc.
The boards of both companies and the majority of Cryptography's stockholders approved the deal, Rambus said. It expects the acquisition to be completed this summer.
Rambus shares fell 24 cents to $19.03 in extended trading. The stock had finished regular trading up 39 cents at $19.27.source
0 Comments
Posts
