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ST. PAUL, Minn., April 22, 2014 (GLOBE NEWSWIRE) -- Aetrium Incorporated (Nasdaq:ATRM) ("Aetrium" or the "Company") announced today that it had entered into an agreement with Boston Semi Automation LLC ("BSA"), a wholly owned subsidiary of Boston Semi Equipment LLC ("BSE"), whereby Aetrium will transfer its Test Handler business to BSE in exchange for a future revenue royalty stream.
"BSE has a track record of maximizing the value of technology products and it also has a strong presence in Asia. For these reasons, BSE is well-positioned to generate more revenue and cash flow from the Test Handler business than Aetrium could on its own, which is why we believe this transaction will generate value for our shareholders," stated Jeffrey E. Eberwein, Chairman of the Board of Directors of the Company. "Going forward, our Company's cash flow will come from the royalty and earn-out payments from our two legacy technology divisions and our modular housing business, the acquisition of which was announced earlier this month."
Consideration for the transaction includes a royalty on all revenue related to the Test Handler business over the next five years that will start at 15% and decline over time to 3%, subject to certain qualifications and adjustments and the assumption of certain liabilities.
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