Semtech To Sell Snowbush IP Business To Rambus - Quick Facts

(RTTNews) - Semtech Corp. (SMTC) said it has agreed to divest its Snowbush IP business -part of the company's Systems Innovation Group - to Rambus Inc. (RMBS), for $32.5 million in cash along with the opportunity to receive additional payments from Rambus through 2022.

The additional payments are based upon a percentage of sales by Rambus of new products expected to be developed by Rambus from the disposed assets.

Semtech expects to recognize a gain on the disposition of the business in the fiscal period that the transaction closes. Other than this gain, the company does not expect the divestiture to have a material impact on its consolidated financial statements.

The transaction is expected to close during the second quarter of Semtech's fiscal year 2017.