Intersil has entered into a definitive agreement to sell its Wireless Networking Product Group to GlobespanVirata.
The sale price is approximately $365 million and will be paid in cash and stock. Intersil anticipates finalising the sale prior to the end of the third quarter of 2003 and expects to report a one-time gain on the transaction.
The sale will include Intersil’s portfolio of PRISM-based wireless networking products and intellectual property, as well as the design, marketing, sales, applications teams and support operations.
The Wireless Networking Product Group is comprised of around 300 employees. In the first quarter of 2003, it reported revenue of approximately $49 million.
Under terms of the agreement, Intersil will receive $250 million in cash and approximately $115 million in GlobespanVirata stock.
Intersil will also retain the accounts receivable and the accounts payable of the Wireless Networking Product Group. This will result in approximately $20 million of additional cash to be collected by the company after the transaction is completed.