Semtech Corp. will sell its Snowbush IP business unit for $32.5 million, the company announced Monday.
The Camarillo semiconductor manufacturer said the buyer, Rambus Inc. in Sunnyvale, could make additional payments to Semtech through 2022 based on a percentage of sales of new products from the sold assets. The transaction is expected to close in the second quarter of Semtech’s fiscal year 2017.
“The planned divestiture of our Snowbush business is consistent with our practice to exit businesses that are no longer determined to be aligned with the company’s core, long-term strategy,” Mohan Maheswaran, Semtech’s chief executive, said in a statement.
Semtech focuses on the analog and mixed signal products market segment.
Shares closed up 26 cents or 1.1 percent to $24.16 on the Nasdaq.