In consideration of the acquired business, Lantiq will pay Metalink up to
- $8.9 million, of which $5.7 million will be paid concurrently with the closing, up to $1.2 million (subject to downward adjustments) to be paid on March 31, 2010; and $2.0 million to be paid in four installments throughout the year 2010; and - Earn-out payments of up to an aggregate $8.0 million, contingent upon the acquired business's achievement of specified performance targets through March 2012.
The transaction is expected to close in the coming weeks and is subject to customary closing conditions, including regulatory approvals.
Metalink also reported today that it has entered into an amendment to its
loan agreement with an institutional investor, under which the repayment of
Following the closing of the transaction, Metalink intends to utilize its improved balance sheet and the potentially significant cash flow from the earn-out payments to explore opportunities synergetic with the Company's expertise and industry relationships.
Mr. Yuval Ruhama, Metalink's Chief Financial Officer, is expected to leave the Company concurrently with the closing, but will continue serving the Company as a consultant through the end of 2010.
"We are pleased that the strategic process we initiated last year has,
despite our difficult financial situation and during an extremely challenging
general market conditions, produced a transaction that is in the best
interests of Metalink and its shareholders, as well as its employees and
"I would like to take this opportunity to thank the talented Metalink team members that will be joining Lantiq. I would also like to extend a special thank you to Yuval Ruhama, our departing CFO, for his long term dedication and contribution to the company," concluded Mr. Shukhman.
Additional details regarding the Lantiq transaction and the amendment to the loan agreement will be included in the Company's 6-K Report to be filed by Metalink with the Securities and Exchange Commission (SEC) in due course.
Metalink Ltd. (NASDAQ: MTLK) is a fabless semiconductor Company engaged in the research, development and sale of wireless local area network (WLAN) chipsets, and in the sale of high performance broadband access chip sets or digital subscriber line (DSL) used by telecommunications and networking equipment manufacturers.
Metalink's WLAN and DSL technologies are designed to enable true broadband connectivity in every home, and its products change the broadband experience by facilitating the convergence of telecommunication, networking and entertainment.
Metalink's WLANPLUS(TM) is a high-throughput, 802.11n-draft-compliant wireless LAN technology optimized for the networked home entertainment environment. Featuring advanced MIMO technology and full support of QoS, and operating in both 2.4GHz and 5GHz bands, WLANPLUS enables multi-room networking of multiple high-definition video streams.
Further information is available at http://www.MTLK.com
SAFE HARBOR STATEMENT
This press release contains "forward looking statements" within the
Contact: Yuval Ruhama CFO Metalink Ltd. Tel: +972-9-9605555 Fax: +972-9-9605544 Yuvalr@MTLK.com
SOURCE Metalink Ltd