Metalink to Sell its WLAN Business to Lantiq for up to $16.9 Million
06 1월 2010 - 6:30AM
PR Newswire (US)
YAKUM, Israel, January 5 /PRNewswire-FirstCall/ -- Metalink Ltd.
(NASDAQ: MTLK) today announced that it has entered into a
definitive asset purchase agreement to sell its wireless local area
network (WLAN) business to Lantiq, a newly-formed fabless
semiconductor company funded by Golden Gate Capital. In
consideration of the acquired business, Lantiq will pay Metalink up
to $16.9 million in cash as follows: - $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 the $4,312,500 originally due upon the closing of
the Lantiq transaction will be reduced to $4,100,000 and repaid in
four installments: $3,750,000 at closing and the remainder in three
installments by March 31, 2011. 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 customers," commented Tzvika Shukhman, Metalink's
Chief Executive Officer. "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. ABOUT METALINK 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 meaning of the
United States securities laws. Words such as "aim," "expect,"
"estimate," "project," "forecast," "anticipate," "intend," "plan,"
"may," "will," "could," "should," "believe," "predicts,"
"potential," "continue," and similar expressions are intended to
identify such forward-looking statements. For example, when we
discuss the expected closing of the sale of WLAN business or the
potential cash flow from the Earn-out payments thereunder, we are
using a forward looking statement. Because such statements deal
with future events, they are subject to various risks and
uncertainties that could cause actual results to differ materially
from those in the forward looking statements. Factors that could
cause or contribute to such differences include, but are not
limited to: in light of our cash status, our inability to raise
additional funds or enter into other strategic transactions on a
timely basis may lead us to insolvency; our inability to regain
compliance with NASDAQ'S requirements for continued listing; any
unforeseen developmental or technological difficulties with regard
to our products; changes in the competitive landscape, including
new competitors or the impact of competitive pricing and products;
and the impact on revenues of economic and political uncertainties
and weaknesses in various regions of the world, including the
commencement or escalation of hostilities or acts of terrorism.
Additional factors that could cause actual results to differ
materially from these forward-looking statements are set forth from
time to time in Metalink's filings with the SEC, including
Metalink's Annual Report in Form F-20. Readers are cautioned not to
place undue reliance on forward-looking statements. Except as
required by applicable law, the Company undertakes no obligation to
republish or revise forward-looking statements to reflect events or
circumstances after the date hereof or to reflect the occurrences
of unanticipated events. The Company cannot guarantee future
results, events, and levels of activity, performance, or
achievements. Contact: Yuval Ruhama CFO Metalink Ltd. Tel:
+972-9-9605555 Fax: +972-9-9605544 DATASOURCE: Metalink Ltd
CONTACT: Contact: Yuval Ruhama, CFO, Metalink Ltd., Tel:
+972-9-9605555, Fax: +972-9-9605544,
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