Atmel to buy Newport Media for $170M

Hardware manufacturer Atmel announced Monday it will buy Newport Media, maker of wireless radio chips, for $170 million. Atmel will pay $140 in cash, with an additional $30 million to be paid out over two years if revenue targets are met.

Newport brought in $43 million in revenue during 2013 specializing in system-on-a-chip components that provide wifi and Bluetooth connectivity. The acquisition will complement Atmel's line of SmartConnect wifi chips and follows on from the 2012 acquisition of Ozmo that focused on bringing Wi-Fi Direct solutions into their offering line-up.

Atmel's other products include touchscreen components, sensors and other electronics for use in cars, airplanes and other industries. Small, low-power radios like those manufactured by both Newport and Atmel are at the heart of every IoT product, letting devices communicate with one another.

With a market cap of nearly 4 billion dollars Atmel is becoming one of the key large players in the Internet of Things space. The news of this acquisition this week comes in tandem with their announcement as one of the founding partners in establishing the Open Interconnect Consortium, a group (one of many popping up these days) focused on defining communication frameworks and open source standards for the IoT.

Related: IoT Investment News, IoT Standards Organizations