Marvell, whose U.S. subsidiary Marvel Semiconductor Inc. is based here, is expected to pay Intel $600 million in cash and assume unspecified liabilities. However, Intel has the option to take up to $100 million of the $600 million purchase price in Marvell common stock. Upon closing, Marvell may record a one-time charge for purchased in-process R&D expenses.

Intel's communications and application processor business develops and sells processors for handheld devices including smart phones and personal digital assistants. The business processors, based on Intel XScale technology, include the Intel PXA9xx communications processor, codenamed Hermon, which powers Research in Motion's (RIM) Blackberry 8700 device. The Intel PXA27x applications processor, codenamed Bulverde, is used in the Palm Treo smart phone, the Motorola Q and other devices.

Marvel is expected to absorb most of the 1,400 employees in Intel's communications and application processor business. After the close of the transaction within five months, Intel intends to continue manufacturing products currently sold by this business for handheld devices and embedded applications, and to manufacture products that are being designed into upcoming devices.

By: DocMemory
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