Intel Buys ST-Ericsson's GPS Business
Bangalore: ST-Ericsson, a 50-50 semiconductor joint venture by ST Microelectronics and Ericsson, extending its investments in positioning technology has sold its Global Navigation Satellite System to Intel. The financial terms haven’t been disclosed, as reported by PCMag.
ST-Ericsson, which focuses on mobile and wireless chips has announced about the asset sales and intellectual property rights associated with its mobile connectivity GNSS business without naming the buyer.
According to an emailed statement by Intel, the deal was signed last week and it includes a team of industry veterans that has a successful track record of developing and commercializing GPS silicon spanning more than 20 years.
The GNSS team of around 130 people located in U.K, Bangalore and Singapore are expected to join Intel at closing of the transaction. According to Intel, the employees based in the UK and Singapore will remain at their current locations, while employees based in India will join WPRD employees at the existing Bangalore location.
Neither company revealed the price, but ST-Ericsson said the proceedings from the sale, combined with the avoidance of employee restructuring charges and other related restructuring costs, would reduce the joint venture’s cash needs by approximately $90 million.
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