Semtech sells off its Snowbush IP business to Rambus Inc.

The Firm's Corporate/ M&A team at Delhi Office, recently acted for Semtech Corporation (NASDAQ: SMTC) ("Semtech"), one of the leading analog and mixed-signal semiconductors suppliers, in relation to the divestment of its Snowbush IP business, part of its Systems Innovation Group to Rambus Inc. (NASDAQ: RMBS) ("Rambus") for an amount of USD 32.5 million, along with certain additional payments to be made over the next several years.

As a part of the aforesaid global deal, a portion of the India business of Semtech was also divested to Rambus. The deal is subjected to the fulfillment of certain customary closing conditions and is likely to end in 2017.

The Luthra & Luthra Law Offices had advised Semtech in all aspects relating to the India leg of the transaction, including aspects relating to the transfer of employees, appointment and removal of directors etc., along with the preparation of the necessary documentation to give effect to the same.

The deal is of significance to both the parties as it is consistent with their core businesses. While on one hand, the deal will help Semtech focus on its core business and exit the production of those items that are no longer determined to be aligned with its core, long-term strategy of delivering leading analog/mixed signal product platforms and therefore will bolster its financial position by de-leveraging its business, it also conforms with the roadmap of Rambus to return to its root business as a chip supplier.

In this deal, the transaction team comprised of Partner Kanchan Sinha; Associates Kaustubh Verma, Sonika Bajpeyee and Sanya Parmar. Partner Anshul Jain; Senior Associate Vivek Agarwal and Kundan Rathore had ably assisted on the compliance-related matters.

Luthra & Luthra team worked round the clock to facilitate the transaction within tight timelines, which was deeply appreciated by the client and continued to assist and advise Semtech on the closing-related actions.