Atmel has signed an agreement to acquire Advanced Digital Design (ADD Semiconductor), a privately held company based in Zaragoza, Spain that develops power line communication solutions. The transaction is expected to close in October. Atmel does not expect the acquisition to have a material impact on its overall financial position and results of operations in 2011.

ADD Semiconductor, a founding member of the PRIME Alliance, specializes in the design of system-on-chip solutions that allow for narrow-band data communication across existing electric power lines. In addition to supporting a number of advanced meter infrastructure pilots in Europe, ADD Semiconductor products are also targeted towards the lighting, building automation and solar infrastructure markets.