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Intel Corporation to acquire wireless solutions business of Infineon Technologies
Sep 02, 2010 (Datamonitor Financial Deals Tracker via COMTEX) --
Intel Corporation, a US-based semiconductor chip making company, has entered into a definitive agreement to acquire wireless solutions (WLS) business of Infineon Technologies AG, a Germany-based designer, developer and manufacturer of semiconductors and system solutions, for approximately $1,400 million in cash.
WLS, a provider of cellular platforms to global phone makers, will operate as a standalone business serving its existing customers. The board of directors of Intel and the supervisory board and the management board of Infineon have approved the transaction. The transaction is expected to close in the first quarter of 2011.
Update on August 26, 2010:
According to Bloomberg, Intel is close to acquire wireless chip business of Infineon for approximately $1,900 million.
Rumor (May 17, 2010):
According to Reuters, German business daily Financial Times Deutschland reported that Intel is in talks to acquire wireless chip business of Infineon.
JPMorgan and Citigroup, Inc. are acting as financial advisors to Infineon. Gleiss Lutz and Paul, Weiss, Rifkind, Wharton & Garrison LLP are acting as legal advisors to Infineon. Evercore Partners, Inc is acting as financial advisor and Morrison & Foerster, LLP is acting as legal advisor to Intel.
Deal Value (US$ Million) 1400
Deal Type Acquisition
Sub-Category Asset Purchase
Deal Status Announced: 2010-08-30
Deal Participants
Target (Company) Infineon Technologies AG - Wireless Chip Business
Acquirer (Company) Intel Corporation
Vendor (Company) Infineon Technologies AG
Deal Rationale
WLS will also contribute to Intel's strategy to make connected computing ubiquitous from smartphones to laptops to embedded computing.
The acquisition of Infineon's WLS business strengthen Intel's computing strategy Internet connectivity and enables it to offer a portfolio of products that covers the full range of wireless options from WiFi and 3G to WiMAX and LTE.
The sale of WLS is a strategic decision to enhance Infineon's value. Infineon can now fully concentrate on its resources towards growth in its core segments Automotive (ATV), Industrial & Multimarket (IMM) and Chip Card & Security (CCS).
The WLS transaction is a strategic decision for Intel and Infineon. WLS complements Intel's existing assets and enables growth in mobile computing, smartphones and embedded computing.
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