e2v acquires Atmel Grenoble

has conditionally agreed to acquire

for $140 million subject to a post-completion adjustment based upon the level of net working capital in Atmel Grenoble at completion.

Atmel Grenoble is a designer, manufacturer and distributor of specialised electronic components and sub-systems including image sensors and cameras, smart RF transceivers, aerospace-qualified microprocessors and broadband data converters.

According to a statement, e2v’s directors believe the acquisition represents an opportunity to strengthen the group’s position as a major global provider of specialised electronic components and sub-systems.

In particular, the directors believe that the acquisition will secure a number of benefits for the group following the acquisition including an enhanced market position through increased scale and expertise; increased technological capabilities; a strengthened product range offering cross-selling opportunities; and strengthened research and development capabilities and opportunities for technology transfer.

The acquisition, which is expected to complete on 31 July 2006, is conditional on approval by e2v’s shareholders and the French Ministère de l’Economie, des Finances et de l’Industrie.