Infineon Technologies is selling its Wireless Solutions (WLS) business to Intel in a cash transaction valued at approximately $1.4bn (£0.9bn).
WLS is a provider of cellular technologies to top-tier global phone manufacturers and will operate as a standalone business serving its existing customers.
‘The global demand for wireless solutions continues to grow at an extraordinary rate,’ said Paul Otellini, Intel president and chief executive officer. ‘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.’
’The sale of WLS is a strategic decision to enhance Infineon’s value,’ said Peter Bauer, chief executive officer of Infineon Technologies. ‘We can now fully concentrate our resources towards strong growth in our core segments − automotive, industrial and multimarket, and chip card and security.’
With annual revenue of €917m (£751m), WLS represents approximately 30 per cent of Infineon’s total annual revenue of €3bn in the past financial year.
The board of directors of Intel and the supervisory board and the management board of Infineon have approved the transaction, which is expected to close in the first quarter of 2011.