Transmeta Corp. is being acquired -- in a take-private deal -- by video processing company Novafora Inc. for $255.6 million in cash. Santa Clara, Calif.-based Transmeta, which develops microprocessors, started looking for strategic options in February after it received an unsolicited bid of $190 million from shareholder Riley Investment Management LLC.
At the time, Riley accused the company of breaches of fiduciary duty, gross mismanagement, waste of corporate assets and abuse of control, The Deal's Donna Block reported. The report said Transmeta, which was founded in 1995, failed to compete against Intel Corp. as a chip supplier -- it transformed itself into a supplier of processor intellectual property in 2005.
Monday's deal terms say that Transmeta may not enter into any future licensing transaction prior to the closing of the merger without Novafora's consent. The firm also
turned profitable last quarter and entered into a nonexclusive patent license agreement with Advanced Micro Devices Inc.
The deal is expected to close in the first quarter. -
Baz HiralalSee the deal announcement
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