Intel to acquire Infineon's wireless solutions business
Tuesday, 31 August 2010, 18:34 IST
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New York: World's largest chipmaker Intel has announced its plan to acquire Infineon Technologies AG's Wireless Solutions (WLS) business in a cash deal worth about $1.4 billion. The announcement comes within two weeks of Intel's proposal to snap up security software company McAfee in another all-cash deal worth $7.68 billion. Intel has entered into a definitive agreement with global semiconductor and system solutions firm Infineon to acquire its WLS business in a cash transaction, valued at around $1.4 billion, read the joint statement by the two companies. WLS, a leading provider of cellular platforms to global phone makers, would continue working independently as a business operator serving its customers. WLS would also contribute to Intel's strategy to make connected computing ubiquitous from smartphones to laptops to embedded computing, the statement added. The board of directors of Intel and the supervisory board and the management board of Infineon have approved the transaction. "It is expected to close in the first quarter of 2011, subject to certain regulatory approvals and other customary closing conditions specified in the definitive agreement," the statement read. With an annual revenue of 917 million euro, WLS accounted for about 30 percent of Infineon's total annual revenue of 3.03 billion euro in the past financial year. "The acquisition of Infineon's WLS business strengthens the second pillar of our computing strategy, Internet connectivity, and enables us to offer a portfolio of products that covers the full range of wireless options from WiFi and 3G to WiMAX and Long Term Evaluation (LTE)," Intel president and CEO Paul Otellini said. The WLS transaction is a strategic decision for Intel and Infineon. WLS complements Intel's existing assets and enables growth in mobile computing and smartphones, while helping Infineon achieve better energy efficiency, mobility and security. In recent times, Intel has made a string of buyouts of software entities, including Wind River and Havok.
Source: PTI
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