So, Virage Logic is taking another step towards becoming a major IP and system on chip player with a deal to acquire key IP from NXP.
The deal sets up an R&D centre for Virage in Eindhoven, home of NXP, for advanced CMOS I/O, analogue mixed signal and System-on-Chip (SoC) infrastructure IP. These new products are expected to be commercially available in early 2011, and sit alongside the UK-based ARC configurable processor technology acquired in August this year, creating an SoC powerhouse.
Under the terms of the multi-year agreement, NXP will transfer over 160 employees and the assets associated with selected advanced CMOS libraries, IP blocks and SoC architecture along with other classes of semiconductor IP, including approximately 25 associated patent families. In return, NXP will receive 2.5 million shares of Virage Logic common stock and a share of the future revenue generated by Virage Logic from licensing the transferred IP portfolio. In addition, Virage Logic will provide to NXP services surrounding the transferred IP for a 3.5-year period, and NXP will receive a 3.5 year license to Virage Logic’s extensive standard-products semiconductor IP portfolio for all future SoC designs.
For all of this, NXP pays $60m over the next four years!
Dan McCranie, executive chairman for Virage Logic, said, “Over two years ago, we embarked on a transformation that was based on several key strategic initiatives. Amongst those initiatives were, a) the broadening of our IP product portfolio through both organic and inorganic growth and, b), establishing Virage Logic as the semiconductor industry’s Trusted IP partner. Today’s announcement with NXP represents strong progress on both of those initiatives. All of us at Virage Logic are proud of the confidence that NXP has shown in our technical teams to be selected as the IP provider to NXP for their future development. In addition, we are excited about the future ability to expand our IP offerings to the semiconductor industry through the productizing of NXP’s important IP elements.”
“Virage Logic was founded on the vision that an independent IP company could provide the technically superior building blocks the global semiconductor industry needs to develop their highly differentiated end products more cost effectively and deliver them to market more quickly,” said Dr. Alex Shubat, president, CEO and co-founder of Virage Logic.