Atmel to buy ADD Semiconductor

San Jose, Calif. — Atmel Corp. has signed a definitive agreement to acquire Advanced Digital Design, S.A. (ADD Semiconductor), a privately-held company based in Zaragoza, Spain that develops power line communication solutions. The transaction is expected to close in October.

ADD Semiconductor specializes in the design of system-on-chip solutions that allow for narrow-band data communication across existing electric power lines. With the acquisition, Atmel will acquire a portfolio of power line communications products along with a team of technical experts focused on signal processing and power line communications.

In addition to supporting a number of advanced meter infrastructure (AMI) pilots in Europe, ADD Semiconductor products target lighting, building automation and solar infrastructure markets, which will better position Atmel in the smart meter, energy management, home and building automation markets.

Atmel does not expect the acquisition to have a significant impact on its overall financial position and results of operations in 2011.