- Expand MoSys’ product portfolio and addressable markets with the addition of highly valued and differentiated IP
- Accelerate the growth opportunity for MoSys’ 1T-SRAM IP in the networking and communications markets and provide stronger customer synergies
- Increase revenue and generate positive cash flow for the second half of 2009 and 2010
- Add a world-class team of engineers, including a highly talented, cost-efficient engineering design center in India
Under the terms of the agreement, MoSys paid approximately $13.5 million at the closing, and potentially will pay an additional earn-out amount of up to $6.5 million after the first anniversary of the closing date, subject to the attainment of specified milestones during the initial 12-month post-acquisition period. MoSys has not assumed any Prism stock options or employee equity incentive awards but has agreed to grant up to a maximum of 3.7 million shares of MoSys common stock under stock options or restricted stock units (RSUs) to 25 newly hired former Prism Circuits employees (with one RSU share equated to three option shares for this purpose).