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Intel and Inside Secure agree US$19.2m NFC technology deal

Intel is to acquire Inside Secure‘s next generation NFC modem technology in a US$19.2m deal that will also see the existing NFC licensing agreement between the two companies being converted into “a broad and fully paid up license” and a number of Inside Secure employees moving to work for Intel.

Inside Secure CEO Remy de Tonnac

DE TONNAC: “Very pleased” with deal

The all-cash deal “is expected to be strongly accretive to Inside Secure’s earnings in 2014,” Inside Secure says, “both thanks to the license revenue and on-going reduction in operating expense.”

Under the terms of the deal, which is expected to close during the second quarter of 2014, Inside Secure will:

  • Extend Intel’s 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, which is currently under development, “together with certain related tangible and intangible assets, including certain IP assets.”
  • Receive a payment from Intel of US$19.2 million “in cash at closing.”

Intel, in turn, “would offer employment to certain Inside Secure employees based in France and California.”

The deal, Inside Secure adds, is “fully in line” with its current strategy to:

  • Focus on high added value embedded security solutions for mobile and connected devices through its Mobile Security and Secure Transactions divisions.
  • Address the NFC market through licensing programs.
  • Continue supporting its legacy microcontroller NFC business and existing customers.
  • Pursue the development of other hardware platforms for mobile and other connected devices. In particular, Inside Secure says it plans to continue to develop its PicoPulse NFC booster front end.

“Over the last two years, we have been impressed by the technology, deliverables and the professionalism of Inside Secure,” says Intel’s Aicha Evans. “Intel will continue with this NFC technology in support of our wireless product roadmap.”

“We are very pleased with this new strategic agreement with Intel,” adds Rémy de Tonnac, Inside Secure’s CEO. “It demonstrates the ability of Inside Secure to develop cutting edge technology and IP that major semiconductor companies can integrate in their offering. It will also contribute to increasing our strategic focus on embedded security solutions for mobile and connected devices.”

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