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Integrated circuit products manufacturer Atmel Corporation (ATML - Analyst Report) recently inked a definitive agreement to acquire high performance low-power Wi-Fi and Bluetooth solutions manufacturer Newport Media, Inc. The strategic move is aimed to gain a greater pie in the ‘Internet of Things’ market by leveraging a comprehensive portfolio of smart connected devices.

The transaction will add Newport Media's 802.11n Wi-Fi and Bluetooth certified products in Atmel’s kitty to augment its already broad SmartConnect wireless portfolio for faster seamless communication and connectivity. The enriched assortment of products will offer a broad spectrum of applications including industrial, home and building automation, and consumer products that require smaller form factors and longer battery life.

Atmel will pay $140 million cash for the purchase, along with an additional earn-out of up to $30 million, subject to the achievement of future revenue thresholds over a two-year timeframe. The transaction, expected to close during the third calendar quarter, will be funded with cash on hand and borrowings under its existing credit facility.

Based in San Jose, CA, Atmel designs, develops, manufactures and sells integrated circuit (IC) products. These products include microcontrollers, advanced logic, mixed-signal, non-volatile memory and radio frequency (RF) components. Atmel produces non-volatile memory that stores information after power is turned off and combines this with microcontrollers, digital signal processors and other logic to meet the needs of its customers.

Atmel currently has a Zacks Rank #3 (Hold). Other stocks that look promising and are worth considering in the industry include Cavium, Inc. (CAVM - Snapshot Report), FormFactor Inc. (FORM - Analyst Report) and Rambus Inc. (RMBS - Snapshot Report), each carrying a Zacks Rank #2 (Buy).

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