Infineon Technologies and Intel on August 30 jointly announced that they have entered into a definitive agreement to transfer Infineon's Wireless Solutions (WLS) business to Intel in a cash transaction valued at approximately US$1.4 billion. WLS 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. 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 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 Wi-Fi and 3G to WiMAX and LTE," said Paul Otellini, Intel president and CEO.

"The sale of WLS is a strategic decision to enhance Infineon's value. We can now fully concentrate our resources towards strong growth in our core segments Automotive (ATV), Industrial & Multimarket (IMM) and Chip Card & Security (CCS)," said Peter Bauer, CEO of Infineon.

WLS provides baseband processors, radio-frequency transceivers, power management ICs, additional connectivity features, single-chip solutions as well as the corresponding system software. With annual revenue of 917 million euro (US$1.17 billion), WLS was approximately 30% of Infineon's total annual revenues of 3.03 billion euro in the past financial year.

By: DocMemory
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