Rambus to acquire Verimatrix silicon IP business for $65M in cash
Verimatrix announced it has entered into an exclusivity agreement to sell its Silicon IP and Secure Protocols business unit to Rambus for a transaction consideration of $65M in cash. The SIP business unit, one of the two business units of Verimatrix, generated $22M in revenue, representing 17% of the company's revenue, for an EBITDA margin consistent with the one of the company overall, operated by a team of about 72 people based in Europe, the U.S. and Asia. The SIP business unit provides intellectual property components, software toolkits and provisioning solutions to enable semiconductor manufacturers and fabless companies, device manufacturers and security software integrators to meet the critical needs for secure communication and performance acceleration, information protection and user privacy for IoT and network security markets. The transaction is intended to be signed in Q3 subject to completion of an information and consultation process with Verimatrix works council in France. It is expected to close in Q4 subject to customary signing and closing conditions.