Jan 4 2006
Simtek Corporation, the inventor, pioneer, and world's leading supplier of advanced nonvolatile static random access memory (nvSRAM) products, announced today that it has completed the purchase of certain assets related to the nvSRAM product line of Zentrum Mikroelektronik Dresden AG (“ZMD”) for $8 million in cash and 6,260,713 shares of common stock at 31.95 cents per share .
This transaction was previously announced on December 7, 2005 with a press release and 8-K filing. Financing for the cash portion of the transaction was secured via a separate private placement of common stock announced by the Company on the same date as this release.
“This transaction is pivotal for Simtek in positioning the company for growth and improved profitability. It is expected to be highly accretive. Since there is no significant addition to Simtek overhead we believe it will accelerate the Company’s return to profitability,” said Harold A. Blomquist, President and Chief Executive Officer of Simtek.
Transition teams have been set up by both Simtek and ZMD to ensure that customers receive excellent service and support throughout the transition. Simtek has established a European design, customer service and support center, Simtek GmbH, in Dresden, Germany. The Company plans to hire designers who have been working on 1 Megabit and 4 Megabit designs previously underway at ZMD and expects to accelerate product development and introduction of innovative new products.