The arrangement includes a $100 million price for the business and around $65 million for the Fujitsu Semicondictor inventory. The transaction is expected to close out between July and September this year.
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Sunnyvale, California-based Spansion has strong ties with Fujitsu — it was originally founded as a joint venture between AMD and Fujitsu in 2003 — and both companies share a number of common customers.
John Kispert, president and CEO of Spansion, explained that the deal will see the company move into embedded system chipsets with no redundancies expected.
“This acquisition provides incremental revenue and aligns with our strategy to expand into system-on-chip solutions that require leadership in embedded Flash technology.
We will gain valuable people and intellectual property as well as microcontroller and analog products that will enable us to expand our customer base, addressing complete embedded systems requirements in automotive, industrial and consumer markets. We have been strategic partners with Fujitsu Semiconductor for decades and share many of the same customers.
We expect a seamless transition for all of the employees and customers.”
Fujitsu is selling the unit as part of “restructuring initiatives” it is carrying out within its semiconductor business, according to a statement from Masami Yamamoto, president of Fujitsu Limited.
Headline image via AFP /Getty Images