National Semiconductor Corporation of Santa Clara, CA, U.S. today announced it has signed a definitive agreement to sell its Information Appliance (IA) business unit, which consists primarily of the Geode™ family of microprocessor products, to Advanced Micro Devices, Inc. Financial terms of the sale, which is expected to close by the end of August, were not disclosed.
In February 2003, National announced its intention to sell its IA business in order to streamline National's cost structure and focus investments on higher-margin analog technologies. The IA business unit planned to be sold to AMD currently accounts for less than 5 percent of National's total annual revenue.
Pursuant to the terms of the agreement, AMD would acquire certain intellectual property and assets of the IA business unit and approximately 132 employees that currently support the IA business unit.
"This deal makes good sense for both companies," said Brian L. Halla, National's chairman, president, and CEO. "This allows National to focus on growing our core analog business and improving our returns. At the same time, AMD will be able to leverage the Geode technology through their existing manufacturing and marketing infrastructure. We intend to work with AMD to ensure a rapid and successful transition for our customers."
"We look forward to warmly welcoming the IA team to AMD," said Billy Edwards, vice president and general manager, Personal Connectivity Solutions Group, AMD. "The addition of the IA team will accelerate our ability to deliver value to our existing customers and in new markets."
A portion of the total National employees who currently support the IA business unit will not be transferring to AMD, primarily due to marketing and engineering infrastructure that AMD already has in place. As a result, National expects to lay off approximately 65 individuals in connection with this transaction and record a charge for severances in the current quarter, which ends Aug. 24, 2003.
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