Zarlink has sold its Analog Foundry in Swindon, UK to MHS Electronics UK, a subsidiary of MHS Industries Group. Zarlink has transferred all assets related to its Swindon foundry business, including the analog foundry and equipment, employees, third-party inventory and other assets but excluding cash on hand, accounts receivable and accounts payable, to MHS Electronics for Euro 1. In addition, Zarlink has paid MHS Electronics Euro 2 million to support restructuring initiatives. The two companies have signed a three-year agreement to ensure continuity of wafer supply for Zarlink, under which Zarlink will deposit US$3.9 million, representing about nine months of product orders.