Intel Corporation will acquire next generation near field communication (NFC) modem technology from INSIDE Secure SA in a $19.2 million deal. The agreement will also see the existing NFC licensing agreement between both companies converted into a broad and fully paid-up license.
Headquartered in Meyreuil, France, INSIDE Secure provides comprehensive embedded security solutions that protect critical corporate assets, including connected devices, content, services, identity and transactions.
Under the terms of the agreement, INSIDE Secure will transfer to Intel its MicroRead-v5 next-generation NFC hardware and software modem technology currently under development together with certain related tangible and intangible assets, including certain IP assets.
It will also extend the current worldwide, perpetual license into a broad, royalty-free and fully paid-up license, with INSIDE Secure retaining ownership of most of the related IP assets and rights.
The execution of the agreements is intended to take place upon completion of an "information and consultation" process with INSIDE Secure's works council in France, and is subject to customary signing and closing conditions.
The transaction is expected to strongly add to INSIDE Secure's earnings in 2014 due to the license revenue and ongoing reductions in operating expenses.
Rémy de Tonnac, Chief Executive Officer of INSIDE Secure, said his company is very pleased with this new strategic agreement with Intel.
"It demonstrates the ability of INSIDE Secure to develop cutting edge technology and IP that major semiconductor companies can integrate in their offering. It will also contribute to increasing our strategic focus on embedded security solutions for mobile and connected devices."
Aicha Evans, Corporate Vice President and General Manager of the Wireless Platform Research and Development Group in the Platform Engineering Group of Intel, said that over the last two years, Intel has been impressed by the technology, deliverables and the professionalism of INSIDE Secure.