Introducing Thread: A New Wireless Networking Protocol for the Home

Industry-leading companies form Thread Group to create simple, secure and low-power network for the home and its connected products.
Recognizing the need for a new and better way to connect products in the home, seven companies today announced that they've joined forces to form the Thread Group (www.threadgroup.org) and develop Thread, a new IP-based wireless networking protocol. The charter of the Thread Group is to guide the adoption of the Thread protocol. Thread Group founding members consist of industry-leading companies including Yale Security, Silicon Labs, Samsung Electronics, Nest Labs, Freescale® Semiconductor, Big Ass Fans and ARM.
While currently available 802.15.4 networking technologies have their own advantages, each also has critical issues that prevent the promise of the Internet of Things (IoT) from being realized. These include lack of interoperability, inability to carry IPv6 communications, high power requirements that drain batteries quickly, and “hub and spoke” models dependent on one device (if that device fails, the whole network goes down). With Thread, product developers and consumers can easily and securely connect more than 250 devices into a low-power, wireless mesh network that also includes direct Internet and cloud access for every device.
“Existing wireless networking approaches were introduced long before the Internet of Things gained ground,” said Vint Cerf, vice president and chief Internet evangelist, Google, and advisor to the Thread Group.
“The Thread protocol takes existing technologies and combines the best parts of each to provide a better way to connect products in the home.”
“A number of networking solutions and platforms have been introduced to address the growing demand for connected products in the home,” said Lisa Arrowsmith, associate director, connectivity, smart homes and smart cities, IHS Technology.
“Built on well-proven standards, including IEEE 802.15.4, IETF IPv6 and 6LoWPAN, Thread represents a resilient, IP-based solution for the rapidly growing Internet of Things.”
Not Just Another Standard
Unlike many existing technologies or IoT approaches, Thread is not an application protocol or a connectivity platform for many types of disparate networks. Thread is an IPv6 networking protocol built on open standards, designed for low-power 802.15.4 mesh networks. Existing popular application protocols and IoT platforms can run over Thread networks. A version of Thread is already being used successfully in Nest products today.
A Better Network for Developers
Using proven standards and IPv6 technology with 6LoWPAN as its foundation, Thread offers product developers numerous technological advantages over existing wireless standards:
Reliable networks: Thread offers robust self-healing mesh networks that scale to hundreds of devices with no single point of failure. Devices are ready when people need them.
Secure networks: Thread networks feature secure, banking-class encryption. Thread closes identified security holes found in other wireless protocols and provides worry-free operation.
Simple connectivity: Thread devices are simple to install with a smartphone, tablet or computer. Consumers can securely connect Thread devices in the home to each other and to the cloud for easy control and access from anywhere.
Low power: Thread supports battery-operated devices as part of a home network. This allows the devices that people use every day – including thermostats, lighting controls, safety and security products – to be a part of the network without requiring constant charging or frequent battery changes.
Millions of existing 802.15.4 wireless devices already on the market can run Thread with just a software enhancement — no new hardware required. Thread is designed for quick implementation and deployment of devices throughout the home.
Easy to Set Up, Easy to Use
Thread is designed with a new security architecture that allows consumers to simply and securely add and remove products to the network via a smartphone, tablet or computer. Thread's mesh network technology provides improved reliability and coverage anywhere in the home and Thread products will be tested to ensure that they work together effortlessly and securely right out of the box. Thread products will also bear the Thread logo, indicating they have been certified for quality, security and interoperability — and to help consumers identify them on the market.
Thread Group Membership
The Thread Group is focused on educating product developers and consumers on the benefits of Thread through marketing and rigorous, meaningful product certification. The Thread Group will offer two tiers of membership, Sponsor and Contributor. Interested parties can review membership benefits and register at http://www.threadgroup.org/Join.aspx.
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Turkcell Announces Connected Car Platform for More Access to Information and Fun on the Go

Turkcell, Turkey's leading telecommunications and technology company, announced Turkey's first Connected Car Platform. The platform connects the car and its driver to mobile internet and essential location-based services, enriching the driving experience.
Turkcell's Connected Car Platform, which will be available in select Subaru and Volvo models in Turkey as of August 1st, offers an infotainment screen that works online. The driver can connect to vital information and entertainment under three categories: Navigation, Internet, Roadside Assistance.
Through this menu, Turkcell Connected Car platform allows the driver to:
Track traffic in real time and optimize the route.
Locate and get directions to parking lots, pharmacies and gas stations.
Get real time financial updates and locate nearby ATMs of partnering banks. Garanti Bank of Turkey is the first partner of the platform.
Share the car's own location information with friends, colleagues and roadside assistance.
Stay connected to social network platforms while ensuring safety in traffic. Social media access shuts down automatically when the driving speed exceeds 10 km/hr.
Enjoy music online with Turkcell's live music streaming service Fizy which includes 3 million song alternatives.
Speaking at the press conference where the Platform was introduced, Selen Kocabas, Turkcell's Chief Corporate Business Officer underlined Turkcell's leading role in M2M technologies.
“Turkcell launched the first M2M SIM card in Turkey in 2011. Today, 2 out of every 3 M2M SIM cards in Turkey are issued by Turkcell. We were the first company to open M2M call center. We are excited to add another first to our M2M offerings with Turkcell's Connected Car Platform that integrates drivers into the car ecosystem”, said Kocabas.
Yigit Kulabas, Turkcell's Chief Corporate Marketing Officer, emphasized the need for localized M2M products in Turkey.
“With its Connected Car Platform, Turkcell once again proves its global perspective in making technological solutions available to its customers. This product also fills an important void in the Turkish market – not many connected car solutions serve local needs. With this Platform, Turkcell localizes the essential information on internet for drivers through a user-friendly interface offering great customer experience.”
As Turkey's leading M2M solutions provider, Turkcell already has a strong presence in the smart vehicle market. Turkcell's tracking products are used in more than 500 thousand, mostly commercial, vehicles, making Turkcell the top operator in Europe in vehicle tracking in one country. Through route and fuel optimization, Turkcell helped Turkish economy save 500 Million USD in 2013. Connected Car Platform is Turkcell's first M2M solution that is geared primarily towards passenger cars.
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Telefónica selected by CGI to support initial Smart Meter rollouts

Telefónica is joining CGI's Smart Data Service, offering greater choice for connectivity provision to energy firms that are rolling out smart meters, during the Foundation Phase.
To date over 600,000 smart meters have been deployed by the UK's energy companies and CGI is supporting seven of the eight energy firms that have undertaken initial roll-outs.
Under the terms of the agreement CGI will integrate Telefónica's communication network with its Smart Data Service meaning it will be able to offer its energy company customers Telefónica's communication services, increasing the range of communication options available to them.
Tara McGeehan, Vice President Energy & Utilities, CGI UK commented:
“We are providing our Smart Data Service to seven UK energy suppliers and helping them to offer choice and the latest technologies to their consumers during the Foundation Phase. Telefónica UK joining us is a major positive for all those initial pilots and trials that are underway delivering increased choice and leading connectivity services.”
“We also look forward to working with Telefónica UK as partners in the Data and Communications Company (DCC) to support the mass rollout of smart meters in Britain.”
David Taylor, Managing Director of M2M at Telefónica UK, said:“We have already been supporting utility firms with their smart metering initiatives in the UK, and we are delighted to now be a part of CGI's Smart Data Service which is one of the most widely adopted platforms by UK energy companies. We look forward to being able to extend the range of services we offer to utilities using smart meters in Britain.”
Telefónica was recently awarded two of the three regions for smart meter connectivity by the Department of Energy and Climate Change (DECC) under the mass roll-out of smart meters, which is expected to begin in December 2015. Today's announcement means Telefónica will also be able to support the initial trials and pilot rollouts that are already underway or planned by the UK's energy companies.

Source: http://news.o2.co.uk/2014/07/14/telefonica-selected-by-cgi-to-support-initial-smart-meter-rollouts/

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World First: Emergency Call System with FUJITSU TEN-provided Telematics Control Unit Successfully Demonstrated in Europe and Russia Simultaneously

Developer of ECLIPSE car navigation brand and advanced safety systems, FUJITSU TEN LIMITED provided an emergency call specification Telematics Control Unit (TCU)¹ for the emergency call system live demonstration at the ITS European Congress 2014 venue in Helsinki.
To demonstrate the interchangeability between the European eCall system and the Russian ERA-GLONASS system, demonstrations were carried out simultaneously in Europe and Russia for the first time in the world.
To help mitigate the consequences of serious road accidents, the European Commission (EC) has adopted a proposal for a regulation concerning a type-approval requirement for deployment of the eCall system. In Russia, a technical regulation on wheeled-vehicle safety with ERA-GLONASS has been adopted and will come into force in 2015. GSM, which is the mobile communication standard in Europe, is to be adopted as the wireless communication standard. In order to enforce eCall-related standards, a pre-deployment pilot project (HeERO²) has been promoted aggressively in European countries since 2011. These demonstration and interoperability tests are a part of HeERO's activities.
The demonstrations verified that typically a vehicle equipped with ERA-GLONASS initiates an emergency call (eCall) to PSAP in Europe, and likewise that a vehicle equipped with eCall initiates an emergency call (ERA-GLONASS) to PSAP in Russia. Thus, the interoperability between eCall and ERA-GLONASS was confirmed.
Contributions to development of advanced safety systems through the state-of-the-art technologies of telematics
Correspondence to the emergency call system leads to the best opportunity to introduce the telematics service which needs standard installation of the communication device to all vehicles. The telematics service makes it possible to gather and provide information which contributes to improvement of comfort, safety, convenience and satisfaction for the customer and which is a bridge linking people, vehicles and society.
Marcel Visser, Member of the ERTICO Supervisory Board and Director Business Development, Automotive Segment, Gemalto³:
“The first ever simultaneous and live emergency eCall interoperability demonstration at the 2014 European ITS Congress in Helsinki highlights the power of advanced connected car technology to improve road and driver safety.”
Evgeni Meilikhov, Development Director, ERA-GLONASS Project, GLONASS Union:“We were glad to demonstrate harmonized operation of ERA-GLONASS and eCall systems together with our partners ERTICO and Fujitsu Ten at the 10th ITS European Congress. Harmonization of standards and technical regulations will facilitate creation of a common safety space in Russia and EU. This will bring us closer to our common goal – saving lives on the roads.”

¹ TCU: Telematics Control Unit
² HeERO: The pan-European project that promotes eCall Emergency call system to be mandatory
³ Gemalto: Gemalto is a company providing auto grade wireless modules for eCall and solutions in achieving reliable global connectivity across country and network borders. For more information, please visit http://www.gemalto.com/m2m
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A Look Into the Future of Connected Cars

Guest post by Eva Enanoria, LeadingQuest.
Recent market research shows that the Connected Cars market can grow really big. According to these reports, the US market alone will grow at 6.92% CAGR over a period of five years, from 2013 to 2018. We asked how ready the world, the consumers and businesses, is for connected cars. Eventually, we will. But do we know what we are getting ourselves ready for?
At the rate that the connected world and Internet of Things are going, connecting virtually everything, from phones, to smart homes, to cities, we are in for the ride of our life. The future of car technology is really about connections. It’s about connecting our car to the outside world and perhaps to other cars as well. At the most recent Connected Car Expo in Los Angeles, exhibitors showcased their inventions and innovations, showing the world how different cars are becoming in terms of connectivity. The expo displayed new technologies in car navigational systems, online shopping capabilities, self-parking and driverless driving.
Needless to mention, car manufacturers are very exuberant in this area. Ford, for example has introduced the Edge Concept car that comes with a fully assisted parking aid. A similar feature is already available in some Ford cars today using an active park-assist technology. The fully assisted parking system, however, allows the driver to park his car while outside the car with a use of a remote control. And it can also find parking spaces using ultrasonic sensors. This technology brings in the next most talked about technology when it comes to Connected Cars – Driverless Cars. This has been in the works for quite some time, although no fully functional vehicle is capable of this yet. Nonetheless, Ford’s self-parking technology clearly suggests that this could happen in the very near future.
Other technologies in the expo included, the 2015 Audi A3 sedan, which is designed with a faster, smoother and easier to operate navigational system. It is equipped with an 4G LTE capacity that allows better rendering of Google Earth and Google Street View. It can also create in-vehicle hot spot that can connect up to eight devices and yet still allowing high-definition streaming and faster downloads. Audi also plans to use high speed wireless connections in future to access more connected services such as finding open spaces in parking areas.
TeleNav, the company known for their built-in navigation systems, is also on a mission to make navigation even easier to use and more efficient. TeleNav added functions that use a single search box instead of the usual multi-step method and a recent destination function on the home screen allowing the system to remember and store most recent searches and destinations. Currently, TeleNav is working on integrating the Scout app to the navigation system so that you can search for your destination on your smartphone while still at home, and transfer the information to the in-car system once you begin driving.
While automakers add more high tech feature to their new cars, innovators made sure that older cars are not left out. An app called Automatic is paired with a gadget that plugs into the car’s diagnostic ports and sends information to a smartphone, allowing drivers to check driving habits and eventually help them save on gas. In addition, it can also help them remember where they parked, decode and clear check engine alerts, automatically call for help and notify loved ones in case of a vehicular accident.
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The Challenges of M2M and IoT

Guest post by Eva Enanoria, LeadingQuest.
One of the challenges in M2M development and the Internet of Things that John Molise, Vice President of Operations at Aeris Communication, pointed is the lack of visibility and information. He mentioned that most IoT programs are missing key elements such as the traditional network troubleshooting and support. As much as fundamental information such as the location of a remote device, other data like RF conditions, device errors and application performance criteria are equally important in providing valuable input on user experience. Other challenges that he mentioned are variable use of network transport as well as the inability of machines to gracefully select consumer traffic. However, apart from impending issues of security in some of the current machine-to-machine communication devices that power the Internet of Everything, as well as the overwhelming cost of global deployment, apparently there are still some other issues that need to be addressed. These are issues that go beyond technicalities.
Many believe that the M2M market is a huge market. According to Vodafone’s latest M2M Adoption Barometer, M2M adoption has increased by more than 80 percent in the past year, and is expected to grow to 10.3 billion devices in 2018 from this year’s 4.4 billion. The survey, which was conducted by Circle Research and participated by 600 execs from more than 14 countries, showed that energy and utilities, consumer electronics and automotive are the top three sectors that contributed to the nearly 30 percent adoption rate. However, a lot of things still need to be done to bridge the gaps and understand the market more.
The industry still faces numerous implementation challenges as most M2M solutions are highly fragmented. Solutions are also mostly dedicated to single application which could possibly result in slow development of the global market. The issue on interoperability among devices still stands, despite efforts from industry leaders in creating solutions that address this communication barrier, such as the Hypercat, a new platform of communication between different devices that the UK tech consortium is pushing to become a standard for IoT semantics. According to the consortium, Hypercat will help will fuel the interoperability of devices as data is being stored in the cloud in standardized formats, making it available to more connected devices, further expanding the Internet of Things. But whether it will become a standard, it is yet to be determined and interoperability may still hinder the effectiveness of these M2M solutions.
Some M2M solutions in the market still use the traditional user-pay models. Consumers would not be too eager to pay 20 cents every time an automated pill box with tracking capabilities is opened or dispenses medications. It is of utmost importance to take into account the type of economic model deployed as well, to avoid cost of service delivery. The nature of collecting data as well as monitoring with M2M devices can possibly cause some privacy and security issues. There may be some business risk, as well as regulatory and legal hurdles, especially in different countries. It is therefore important to have a global standardization for M2M and develop a globally agreed end-to-end specifications for M2M focused on service layers that are using common architecture principles.
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Podsystem Launches M2M ‘Startup Support Packs’ to Burgeoning Hardware Startup Sector

M2M Connectivity Support for Hardware Startups and Internet of Things Applications Developers.
Podsystem M2M, the expert in global machine-to-machine connectivity solutions, has today launched Startup Support Packs, a new Machine-to-Machine (M2M) connectivity support and advice service specifically tailored for hardware startups and internet of things (IoT) applications developers.
Sam Colley, CEO of Podsystem Inc. USA said:
“At Podsystem we understand the challenges faced by new companies just getting started. In the technology sector it’s crucial to move quickly to test products and applications and get them to market before the competition.”
“The ethos behind our Startup Support Packs is to work with new companies to gain a deep understanding of their businesses by accompanying them throughout every stage of their development, to help ensure they can focus on growing successful companies.”
Podsystem M2M Startup Support Packs enable businesses to determine their data use requirements and test out pre-paid Podsystem SIM cards on a short term trial basis with no obligation and no need to sign a lengthy contract.
Colley continued:
“We want to help new startups in M2M hardware and Internet of Things (IoT) application developers to break through in this sector. New companies need a safe environment to develop their products without the risk of signing a 12 or 24 month contract before they have been able to fully test the functionality, performance and data use requirements of their devices or applications.”
Podsystem has specialist knowledge across a wide variety of M2M industry sectors and applications and works to provide comprehensive support to M2M hardware startups and IoT application developers throughout the development process to help ensure devices connect and transmit data effectively.
Colley continued:
“As well as the flexibility of our short term pre-paid trial SIMs, Podsystem has a team of M2M experts on hand to provide personalized support from our San Francisco office. We can help hardware and IOT application developers with advice on firmware and programming for optimizing compatibility with GSM / mobile network data SIM cards to improve the reliability of the device and ensure seamless connectivity.”
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Tight Race for Number Two M2M Cellular Module Vendor as Sierra Wireless Maintains Number 1 Position for 3rd Straight Year

In the latest analysis from ABI Research, Sierra Wireless has maintained the top revenue position for M2M cellular modules for the 3rd straight year.
This is the second year in a row it has maintained the top shipment position. The Market Data package provides both revenue and shipment estimates by vendor for 2013 as well as market share history back to 2003.
However, the number two position in terms of shipments is becoming a much tighter race. Among three vendors, the market share spread is only about 1%.
Commenting on the data, practice director Dan Shey says:
“The tightening of the pack after Sierra Wireless demonstrates a change in strategies from 2012 to 2013. Some vendors have decided that value and one-stop shop services are more important; while other vendors are focused on driving volumes and building market share.”
The result is a sharply different average module price by vendor. These differences also reflect module vendor choices in targeted verticals and module portfolio by air interface technology. Between the top three vendors excluding Sierra Wireless, the market share spread measured in revenues is as much as 13%.
These data and other insights can be found in ABI Research’s, “M2M Cellular Module Vendor Market Share” analysis, which is part of the firm’s M2M Services and Modules Market Research. Named vendors in the analysis are Cinterion Wireless Modules (Gemalto), Huawei, Sierra Wireless, SIMcom Wireless Solutions, Novatel Wireless, Telit Communications, and u-blox.
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Industry Leaders to Establish Open Interconnect Consortium to Advance Interoperability for Internet of Things

Atmel, Broadcom, Dell, Intel, Samsung and Wind River Join Forces to Drive Seamless Device-to-Device Connectivity.
News Highlights:
++ New consortium will seek to define connectivity requirements to ensure the interoperability of billions of devices projected to come online by 2020¹ – from PCs, smartphones and tablets to home and industrial appliances and new wearable form factors.
++ The Open Interconnect Consortium intends to deliver a specification, an open source implementation, and a certification program for wirelessly connecting devices.
++ The first open source code will target the specific requirements for smart home and office solutions, with more use case scenarios to follow.
Technology industry leaders Atmel Corporation, Broadcom Corporation, Dell, Intel Corporation, Samsung Electronics Co., Ltd., and Wind River, are joining forces to establish a new industry consortium focused on improving interoperability and defining the connectivity requirements for the billions of devices that will make up the Internet of Things (IoT). The Open Interconnect Consortium (OIC) is focused on defining a common communications framework based on industry standard technologies to wirelessly connect and intelligently manage the flow of information among personal computing and emerging IoT devices, regardless of form factor, operating system or service provider.
Member companies will contribute software and engineering resources to the development of a protocol specification, open source implementation, and a certification program, all with a view of accelerating the development of the IoT. The OIC specification will encompass a range of connectivity solutions, utilizing existing and emerging wireless standards and will be designed to be compatible with a variety of operating systems.
Leaders from a broad range of industry vertical segments – from smart home and office solutions to automotive and more – will participate in the program. This will help ensure that OIC specifications and open source implementations will help companies design products that intelligently, reliably and securely manage and exchange information under changing conditions, power and bandwidth, and even without an Internet connection.
The first OIC open source code will target the specific requirements of smart home and office solutions. For example, the specifications could make it simple to remotely control and receive notifications from smart home appliances or enterprise devices using securely provisioned smartphones, tablets or PCs. Possible consumer solutions include the ability to remotely control household systems to save money and conserve energy. In the enterprise, employees and visiting suppliers might securely collaborate while interacting with screens and other devices in a meeting room. Specifications for additional IoT opportunities including automotive, healthcare and industrial are expected to follow.
Jim Zemlin, executive director of The Linux Foundation, said:
“Open source is about collaboration and about choice. The Open Interconnect Consortium is yet another proof point how open source helps to fuel innovation. We look forward to the OIC’s contribution in fostering an open environment to support the billions of connected devices coming online.”
Additional member companies including other leading appliance and device manufacturers, service and solution providers, chipset manufacturers and more are expected to join OIC in the coming months. For more information, visit www.openinterconnect.org.
Open Interconnect Consortium Member Quotes:
Atmel:
“Atmel is excited about our participation in OIC to establish an open source framework that goes beyond the digital home and supports services for multiple verticals including consumer, industrial and automotive markets,” said Kaivan Karimi, vice president and general manager of Wireless MCUs at Atmel Corporation. “Together with other industry leaders, we are committed to building a strong technology infrastructure for the Internet of Things; one that is instrumental in solving the pain points where other industry standards fall short today.”
Broadcom:
“Interoperability will be a critical enabler as the IoT ecosystem continues to evolve,” said Rahul Patel, Broadcom senior vice president and general manager, Wireless Connectivity. “Through our collaboration with other industry leaders in establishing an open IoT platform encompassing multiple connectivity technologies, we are removing the barriers to entry and opening up the opportunity for innovation to a broad range of inspired entrepreneurs.”
Dell:
“The explosion of the Internet of Things is a transformation that will have a major impact on our power to do more through technology. Having a connectivity framework that is open, secure and manageable is critical to delivering the foundational elements of that transformation,” said Glen Robson, vice president and CTO for Client Solutions at Dell. “Consumers and businesses alike will need a strong base upon which to build the vast array of solutions enabled by a global Internet of Things. From our earliest days, Dell has embraced industry standards as a means to bring the best technology solutions to our customers, and the Open Interconnect Consortium is very much aligned with this model.”
Intel:
“The rise and ultimate success of the Internet of Things depends on the ability for devices and systems to securely and reliably interconnect and share information,” said Doug Fisher, Intel corporate vice president and general manager of the Software and Services Group. “This requires common frameworks, based on truly open, industry standards. Our goal in founding this new consortium is to solve the challenge of interoperable connectivity for the Internet of Things without tying the ecosystem to one company’s solution.”
Samsung:
“In the Internet of Things era, everything – from PCs, smartphones and tablets to home and industrial appliances and new wearable form factors – should effortlessly connect and communicate with each other, regardless of who makes the device,” said Jong-deok Choi, executive vice president and deputy head of Software R&D Center at Samsung Electronics. “We invite other industry leaders, whatever their background and vertical specialism, to join us in defining and embracing a common communications framework for the Internet of Things.”
Wind River:
“The nascent Internet of Things opportunity requires a robust ecosystem and defined set of standards to realize its full potential,” said Barry Mainz, president of Wind River. “With connectivity requirements evolving at a rapid pace, and an increasing need to ensure device interoperability, the formation of the Open Interconnect Consortium to outline a common communications framework is a logical step in the right direction.”

About Open Interconnect Consortium
The Open Interconnect Consortium, an Oregon non-profit corporation, is being founded by leading technology companies with the goal of defining the connectivity requirements and ensuring interoperability of the billions of devices that will make up the emerging Internet of Things (IOT). To learn more, visit www.openinterconnect.org.
¹ International Data Corporation expects the installed base of the Internet of Things will be approximately 212 billion “things” globally by the end of 2020. This is expected to include 30.1 billion installed “connected (autonomous) things” in 2020. (Source: “The Internet of Things Is Poised to Change Everything, Says IDC,” Oct, 2013)
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Atmel to Acquire Newport Media – Strengthening its Leadership Position in the IoT Market

Acquisition Expands Atmel’s Wireless Portfolio to include Wi-Fi 802.11n and Bluetooth.
Atmel® Corporation (NASDAQ: ATML), a leader in microcontroller and touch technology solutions, today announced that it has signed a definitive agreement to acquire Newport Media, Inc. (“NMI”), a leading provider of high performance low power Wi-Fi and Bluetooth solutions, that will enable Atmel to offer the industry’s most complete wireless portfolio of smart connected devices for the “Internet of Things“.
Adding to Atmel’s already broad SmartConnect™ wireless portfolio, NMI’s 802.11n Wi-Fi and Bluetooth certified products offer innovative, highly integrated solutions that will accelerate seamless communication and connectivity for the Internet of Things. NMI’s products combined with Atmel’s ultra-low power microcontrollers are designed for a broad spectrum of applications including industrial, home and building automation, and consumer products requiring smaller form factors and longer battery life.
The purchase price is $140 million cash, subject to working capital adjustments, plus an additional earn-out of up to $30 million to be paid subject to achievement of future revenue thresholds over two years. The transaction is subject to customary closing conditions, including anti-trust review, and is expected to close during the third calendar quarter. Atmel will fund the transaction with cash on hand and borrowings under its existing credit facility.
NMI recorded $43 million in annual revenue during 2013 and the acquisition is expected to be accretive to Atmel’s non-GAAP financials in the second half of 2015.
“This acquisition immediately adds 802.11n Wi-Fi and Bluetooth to our offerings and will accelerate our introduction of low-energy Bluetooth products,” said Steve Laub Atmel’s President and CEO.
“Combined with our existing Wi-Fi and Zigbee solutions and industry leading microcontroller portfolio, Atmel is positioned for substantial growth in the Internet of Things marketplace.”
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