SAN JOSE, Calif.--(BUSINESS WIRE)--Jan. 31, 2008--Tessera
Technologies, Inc. (Nasdaq:TSRA), a leading provider of
miniaturization technologies for the electronics industry, today
announced it has entered into a definitive agreement to acquire
FotoNation, a leading provider of embedded imaging solutions for
digital still camera and mobile phone applications.
Under the terms of the agreement, Tessera will pay $29 million in
net cash with up to $10 million of additional consideration,
contingent upon certain milestones over one year. This transaction is
subject to various standard closing conditions, and is expected to
close in February 2008.
Based in Burlingame, Calif., FotoNation is a privately-owned,
80-person company that develops innovative embedded solutions to
improve image quality and enhance, extend and simplify picture taking
for digital still cameras and mobile devices. The company's extensive
portfolio of patented solutions includes advanced hardware and
firmware image processing solutions. Principal products encompass
technologies for red-eye correction; face tracking; smile and blink
detection; as well as other solutions for enhancing digital image
quality. FotoNation's technology is embedded in more than two out of
three digital still cameras sold today.
"FotoNation's solutions are a perfect complement to Tessera's
image enhancement technologies and the combined strengths of our two
companies will help drive the proliferation of digital still camera
functionality in mobile camera devices, as well as open new channels
such as digital still cameras for our product portfolio," said Bruce
McWilliams, chief executive officer, Tessera. "With this acquisition,
Tessera will further expand its broad portfolio of integrated consumer
optics solutions, and be positioned to become a 'one-stop shop' for a
full range of camera imaging technologies."
"There is significant, untapped potential for sophisticated
imaging solutions in the growing camera phone market, and Tessera's
close ties to this market will enable us to accelerate the
commercialization of FotoNation's rich portfolio of technology and
products," said Eran Steinberg, chief executive officer, FotoNation.
"Through this acquisition, we see highly compelling opportunities
resulting from combining FotoNation's advanced image processing
technologies with Tessera's consumer optics products."
About Tessera Technologies, Inc.
Tessera is a leading provider of miniaturization technologies for
the electronics industry. Tessera provides a broad range of advanced
packaging, interconnect, and consumer optics solutions which are
widely adopted in high-growth markets including consumer, computing,
communications, medical and defense electronics. Tessera's customers
include the world's top semiconductor companies such as Intel,
Samsung, Texas Instruments, Toshiba, Micron and Infineon. The
company's stock is traded on the Nasdaq National Market under the
symbol TSRA. Tessera is headquartered in San Jose, California. For
information call 1.408.894.0700 or visit www.tessera.com.
Safe Harbor Statement
This press release contains forward-looking statements, which are
made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements involve
risks and uncertainties that could cause actual results to differ
significantly from those projected. Material factors that may cause
results to differ from the statements made include delays, setbacks or
losses relating to our intellectual property or intellectual property
litigations, or any invalidation or limitation of our key patents;
fluctuations in our operating results due to the timing of new license
agreements and royalties, or due to legal costs; changes in patent
laws, regulation or enforcement, or other factors that might affect
our ability to protect our intellectual property; the risk of a
decline in demand for semiconductor products; failure by the industry
to adopt our technologies; competing technologies; the future
expiration of our patents; the future expiration of our license
agreements and the cessation of related royalty income; the failure or
refusal of licensees to pay royalties; failure to achieve the growth
prospects and synergies expected from acquisition transactions; and
delays and challenges associated with integrating acquired companies
with our existing businesses. You are cautioned not to place undue
reliance on the forward-looking statements, which speak only as of the
date of this release. Tessera's filings with the Securities and
Exchange Commission, including its Annual Report on Form 10-K for the
year ended December 31, 2006 and its Quarterly Report on Form 10-Q for
the quarter ended September 30, 2007 include more information about
factors that could affect the company's financial results.
Tessera and the Tessera logo are registered trademarks of Tessera.
All other company, brand and product names may be trademarks or
registered trademarks of their respective companies.
CONTACT: Tessera
Julie Seymour, +1-408-836-3947
jseymour@tessera.com
or
FotoNation
Eric Zarakov, +1-408-348-7907
ericz@fotonation.com
or
JHG-Townsend for Tessera
Patty Ladegaard/Lori Scribner, +1-858-457-4888
Tessera_Team@jhg.com
SOURCE: Tessera Technologies, Inc.