ARC International plc is selling is peripheral connectivity assets to TransDimension Inc., a USB connectivity company, in a deal worth $6.5 million (3.6 million British pounds).

The deal includes assets such as the ARC USB business, primarily located in Nashua, N.H., and Ethernet IP cores, CertiPHY program and support tools, ARC said in a statement.

Separately, TransDimension announced that it has completed its Series C and Series D financings raising a total of $18.35 million.

At its announcement of its February preliminary financials, ARC said it planned to consolidate its USB business into the Elstree, UK facility, closing the Nashua site.  The deal with TransDimension now simply transfers those assets, the facility and the majority of the employees, including the key design engineers responsible for building ARC's USB business to TransDimension.

ARC said the total turnover related to this business in 2003 was $5.3 million (2.9 million pounds) with an estimated operating loss of  $2.4 million (1.3 million pounds). With the new deal, the estimated restructuring charge will be reduced by $1.6 million (900,000 pounds) and is currently expected to be about $2.4 million (1.3 million pounds).

ARC will use proceeds of the sale for working capital requirements in the second half of 2004.

The ARC assets and addition funding will enable TransDimension to expand its wired USB product base and further develop its peripheral connectivity focus into wireless USB used in high-volume consumer electronic devices, the company said.

The new funding also provides working capital for the introduction of new technology to the market and the acceleration of TransDimension's international marketing focus.

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