Inside Secure (NYSE Euronext: INSD), a leader in embedded security solutions for mobile and connected devices, today announces it intends to enter into a new agreement with the Intel Corporation, building on the relationship initiated by their NFC technology license agreement in 2011.
Under the terms of the contemplated agreement, INSIDE Secure would:
• 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
• 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
• receive from Intel USD 19.2 million in cash at closing
Moreover, Intel would offer employment to certain INSIDE Secure employees based in France and California.
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 be strongly accretive to INSIDE Secure's earnings in 2014, thanks to both the license revenue and on-going reduction in operating expense.
This transaction is fully in line with INSIDE Secure's strategy:
• to focus on high added value embedded security solutions for mobile and connected devices through its Mobile Security and Secure Transactions divisions
• to address the NFC market through licensing programs
• to continue supporting its legacy microcontroller NFC business and existing customers
• to pursue the development of other hardware platforms for mobile and other connected devices. In particular, the group plans to continue to develop the NFC booster front end PicoPulse(TM)
Remy de Tonnac, chief executive officer of INSIDE Secure, said: "We are 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 into 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: "Over the last two years, we have been impressed by the technology, deliverables and the professionalism of INSIDE Secure. Intel will continue with this NFC technology in support of our wireless product roadmap."