Semtech Corporation announced it completed the previously announced divestiture of its Snowbush IP business (previously part of the Company's Systems Innovation Group) to Rambus Inc. (Nasdaq:RMBS) on August 5, 2016.
The final total purchase price was approximately $32.0 million in cash, plus the opportunity to receive additional payments from Rambus through 2022 based upon a percentage of sales by Rambus of new products expected to be developed by Rambus from the disposed assets. Semtech will recognize a gain on the disposition of this business in the third quarter of fiscal 2017. Other than this gain, the divestiture will not have a material impact on the Company's consolidated financial statements.
News Source: Semtech