OREANDA-NEWS.  Semtech Corporation (Nasdaq:SMTC), a leading supplier of analog and mixed-signal semiconductors, today announced it has entered into a definitive agreement to divest its Snowbush® IP business (part of the Company’s Systems Innovation Group) to Rambus Inc. (Nasdaq:RMBS), for $32.5 million in cash along with the opportunity to receive additional payments from Rambus through 2022 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 this business in the fiscal period that the transaction closes.  Other than this gain, the divestiture is not expected to have a material impact on the Company’s consolidated financial statements.

Mohan Maheswaran, Semtech’s President and Chief Executive Officer, stated, “The planned divestiture of our Snowbush business is consistent with our practice to exit businesses that are no longer determined to be aligned with the Company’s core, long-term strategy of delivering leading analog/mixed signal product platforms.  We believe that our Snowbush IP business fits well with the current Rambus strategy and portfolio.”

The transaction remains subject to customary closing conditions and is expected to close during the second quarter of Semtech’s fiscal year 2017.

About Semtech
Semtech Corporation is a leading supplier of analog and mixed-signal semiconductors for high-end consumer, enterprise computing, communications and industrial equipment.  Products are designed to benefit the engineering community as well as the global community.  The Company is dedicated to reducing the impact it, and its products, have on the environment. Internal green programs seek to reduce waste through material and manufacturing control, use of green technology and designing for resource reduction. Publicly traded since 1967, Semtech is listed on the NASDAQ Global Select Market under the symbol SMTC.