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Transmeta up for sale after securing $91.5 million license payment from Intel
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On the back of a major settlement agreement with Intel, which will see the microprocessor giant make five annual future payments to Transmeta of $20 million per year and a cash payment of $91.5 million by September 30, 2008, Transmeta has hired Piper Jaffray & Co to find a buyer for the going concern.
“We are very pleased to have achieved the two agreements with Intel," said Les Crudele, President and CEO of Transmeta (pictured). “Receiving these one-time payments strengthens our balance sheet and allows potential buyers to more accurately evaluate our Company. This year, as a result of our successful licensing activities, we will collect at least $265 million of cash payments for our intellectual property and patents. We expect that our intellectual property portfolio and licensing business, combined with our solid balance sheet, will be attractive to potential bidders, and we look forward to conducting a timely process to maximize value for our stockholders. As we proceed with the process, we remain focused on working with potential licensees, as well as developing and validating our IP blocks so that we can broaden our target market.”
The deal with Intel remains a non-exclusive license.