Graham Pitcher

Intel buys Infineon’s wireless business for $1.4bn

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Intel is to buy Infineon's Wireless Solutions business in a cash transaction valued at approximately $1.4billion. The Wireless Solutions business (WSL), which provides mobile platforms to handset manufacturers, will be run as a standalone business.
Both companies describe the deal as 'strategic'. For Intel, the acquisition will contribute to its strategy to make connected computing ubiquitous from smartphones to laptops to embedded computing. Infineon, meanwhile, will now focus on its core businesses.
"We can now fully concentrate our resources towards strong growth in our core segments: Automotive, Industrial and Multimarket; and Chip Card and Security," said Infineon's ceo Peter Bauer. "We all stand to benefit enormously from this deal."
Paul Otellini, Intel's president and ceo, noted: "The acquisition of Infineon's wireless 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 Wi-Fi and 3G to WiMAX and LTE."

Intel will combine WLS' cellular technology with its core strengths to enable the delivery of low power platforms that combine its applications processor with an expanded portfolio of wireless options. This, it believes, will bring together Intel's leadership in Wi-Fi and WiMAX with WLS' leadership in 2G and 3G, and a combined path to accelerate 4G LTE. Intel also pointed ou that it will continue to support WLS customers with 'the best solutions possible', which it says will include ARM based products. Pictured closing the deal are, from the left, Peter Bauer, Anand chandrasekher, general manager of Intel's ultra mobility group, Dr Hermann Eul, Infineon's executive vice president for sales, marketing, technology and R&D, and Arvind Sodhani, president of Intel Capital.
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http://ww.infineon.com
http://www.intel.com