Zilog announced the sale of certain of its assets to Maxim Integrated Products, and Universal Electronics (UEI). In a simultaneous closing, Maxim acquired technology, intellectual property and assets for Zilog's universal remote control hardware and secure transaction businesses, and UEI acquired technology, intellectual property and assets of Zilog's remote control and universal infrared (IR) database solution.

The parties have cross-licensed technology and intellectual property to one another for purposes of the continued conduct of their respective businesses. The purchase price for these assets is approximately $31 million in cash, $3.1 million of which will remain in escrow for up to one year. After giving effect to payments for taxes, professional fees, employee related costs and other transaction costs and after deducting the escrow amount, Zilog will net approximately $22-24 million in net cash proceeds from these transactions.

As part of the transaction, Maxim and UEI or their affiliates are making employment offers to approximately 128 Zilog employees primarily located in the United States, India and the Philippines. Zilog will retain its classic and flash microcontroller business and Crimzon Connects.

Some days before Zilog reported results for its 2009 fiscal year third quarter. Sales were $13.0 million and the GAAP net loss was $5.7 million. The company reported for its 2008 fiscal a sales of $67.2 million and a GAAP net loss of $9.3 million. One year ago Zilog has rejected the hostile takeover offer of Universal Electronics. In march 2008 Ixys acquired 5% of Zilog stock.