Microchip Technology To Sell Mobile Touch Assets To Solomon Systech

(RTTNews) - Microchip Technology Inc. (MCHP) said it has agreed to sell certain Mobile Touch business assets to Solomon Systech (International) Limited, a Hong Kong based semiconductor company. Financial terms of the deal were not disclosed.

The transaction included the sale of certain semiconductor products, equipment and patents; and a license to certain other intellectual property and patents related to Microchip's Mobile Touch product line. Microchip Technology also agreed to provide certain transition services to Solomon Systech.

"This transaction culminates Microchip's previously announced plans to sell the non-core Mobile Touch assets that came to us through the Atmel acquisition. We are very pleased that we were able to consummate this transaction in a timely manner," said Steve Sanghi, Microchip's Chairman and CEO.

This transaction is expected to close within approximately two weeks upon the satisfaction of certain customary closing conditions.

Microchip Technology noted that transaction should have no impact on its continuing operations. The results from the Mobile Touch Business sold to Solomon Systech have been classified as assets held for sale since April 4, 2016, and were not included in the company's results from continuing operations.