Atmel Corporation (NASDAQ:ATML) has announced the release of the world’s smallest and low power Bluetooth solution. The device only demands a total of 3.6V for proper functioning and is expected to increase battery life for certain applications. The company has already started mass production and shipping. Additionally, the company is all set to be sold to Dialog Semiconductor, for a total of $4.6 billion. Dialog would make the payment with a mix of stock and cash.

Atmel’s new SmartConnect Bluetooth solution has been especially designed for space restricted areas. The new chip is only 2.2mm x 2.1mm and is targeted at helping the evolution of the Internet of Things and wearable devices. Furthermore, the chip has the capability to be powered by range of different battery types, from coin-cell to lithium-ion batteries. There is little need for external power management, since the chip does this on its own. Additionally, the overall system cost is reduced as well, with the elimination of some external components. The company has also simplified the design and development process for an entire solution, by offering the Atmel BTLC 1000 XSTK starter kit.

However, despite the recent success with its Bluetooth device, Atmel is still going to go through with its sale. As a result the stockholders are expected to get $10.42 per share returns, in cash and stock combined. The CEO of Semiconductor, Jalal Bagherli, revealed his plans to form a mega platform, which concentrates on microcontrollers, power management, security and connectivity. Another statement from Semiconductor revealed that Morgan Stanely had decided to assist with the purchase. Additionally, the company also expects to save $150 million in annual costs, with the purchase of Atmel. The merger is expected to close during 1Q2016, but is subjected to approval of shareholders and the regulatory bodies.

Atmel Corporation (NASDAQ:ATML) recorded a surge of 0.87% in its share value, to close at $8.08 at the end of the September 23 session. Currently, the company commands a market cap of $3.35 billion.