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Intel to Acquire Infineon's Wireless Solutions Business

Discussion in 'News' started by btarunr, Aug 30, 2010.

  1. btarunr

    btarunr Editor & Senior Moderator Staff Member

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    Infineon Technologies AG and Intel Corporation have entered into a definitive agreement to transfer Infineon's Wireless Solutions (WLS) business to Intel in a cash transaction valued at approximately $1.4 billion.

    WLS, a leading provider of cellular platforms to top tier global phone makers, will operate as a standalone business serving its existing customers. WLS will also contribute to Intel's strategy to make connected computing ubiquitous from smartphones to laptops to embedded computing.

    "The global demand for wireless solutions continues to grow at an extraordinary rate," said Paul Otellini, Intel president and CEO. "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. As more devices compute and connect to the Internet, we are committed to positioning Intel to take advantage of the growth potential in every computing segment, from laptops to handhelds and beyond."

    "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). This creates a great perspective for all Infineon customers, employees and shareholders," said Peter Bauer, CEO of Infineon Technologies AG. "We all stand to benefit enormously from this deal. Thanks to the outstanding effort of the employees and the management during the last years, WLS is excellently positioned to grow further with the new owner who is ideally suited for this business."

    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. Infineon will benefit from this by stronger addressing three central challenges to modern society - energy efficiency, mobility and security.

    Intel's goal is to expand its mobile and embedded product offerings to support additional customers and market segments, including smartphones, tablets, netbooks, notebooks and embedded computing devices. Through this effort, Intel will pair WLS' best-in-class cellular technology with its core strengths to enable the delivery of low-power, Intel-based platforms that combine its applications processor with an expanded portfolio of wireless options -- bringing together Intel's leadership in Wi-Fi and WiMAX with WLS' leadership in 2G and 3G, and a combined path to accelerate 4G LTE.

    Intel expects WLS to continue growing, and remaining a standalone business to ensure continuity of existing customer sales, projects and support. The business will continue to support its customers with the best solutions possible, including ARM-based products as well as Intel-based application processor platforms with leading-edge 3G slim modem solutions.

    WLS today holds leading positions in the field of wireless mobility and cellular platforms for smart phones and ultra-low-cost, entry phones. WLS provides baseband processors, radio-frequency transceivers, power management integrated circuits (ICs), additional connectivity features, single-chip solutions as well as the corresponding system software. This helps to enable the smooth transmission of voice and high-speed data from the backbone of the telecommunication network to the end user's device. With annual revenue of Euro 917 million, WLS was approximately 30 percent of Infineon's total annual revenue of Euro 3.03 billion 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. 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.

    In a Nutshell:
    • Intel to purchase Infineon's Wireless Solutions Business, called WLS, in a cash transaction valued at approximately $1.4 billion. The deal is expected to close in the first quarter of 2011.
    • WLS sale enables Infineon to expand leading position in markets for automotive, industry and security technologies.
    • WLS will operate as a standalone business. Intel is committed to serving WLS' existing customers, including support for ARM-based platforms.
    • The acquisition expands Intel's current Wi-Fi and 4G WiMAX offerings to include Infineon's 3G capabilities and supports Intel's plans to accelerate LTE. The acquired technology will be used in Intel Core processor-based laptops, and myriad of Intel Atom processor-based devices, including smartphones, netbooks, tablets and embedded computers.
    • The deal aligns with Internet connectivity pillar of Intel's computing strategy.
     
  2. tkpenalty New Member

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    Acquisitions and mergers spree!!!
     
  3. the_wolf88

    the_wolf88 New Member

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    WTF !!

    Intel throwing money here and there these days !!

    Give me a billion if you don't need it !
     
  4. Munki

    Munki

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    oh boy. Its getting more and more like a monopoly; the big question is when all the little fish are gone, who is going to buy who? Intel Buy AMD or AMD Buy Intel. Although, im pretty sure that is illegal, and sadly prices will skyrocket :cry:
     
  5. Delta6326

    Delta6326

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    Intel give me a $1billion then i can spend $1000 a day for over 2700+ years!!
     
  6. Yukikaze

    Yukikaze

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    A monopoly would imply being the sole, or close to sole, competitor in the market. This is hardly true for Wireless devices and for Security Software (which are Intel's last two purchases).

    I'd say all those cries of "OMG! MONOPOLY!" are pure hatin'.

    If anything, accuse Intel of monopoly in its CPU business, not when it purchases a wireless group from Infineon.

    Finally, AMD won't be able to afford to buy Intel in the forseeable future (read a decade at the very least, and I am giving them a lot of credit here), and Intel will not buy AMD because such a move would be most likely shot down anyway by regulation bodies. AMD is also what keeps Intel from being officially a monopoly and suffering from harsh(er) laws due to that.
     
  7. Munki

    Munki

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    Im aware of what a monopoly is. First, I was reffering to "Eventually" and second, I was ~80% joking.

    As far as "OMG MONOPOLY" being hatin' no one was freaking out about it, again, it was mostly a joke.

    The accusation of the joke was because Intel would be the company to break rules, if anyone would 'attempt' to be a sole ownership in the computer world, it would be Intel. Just sayin'.
     
  8. AthlonX2

    AthlonX2 HyperVtXâ„¢

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    its good to see intel helping out the companies that cant keep afloat,hopefully this means the employees of infineon wireless group keep their jobs
     
  9. Munki

    Munki

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    Even if only ~50% of the workers were allowed to keep their job, thats better than the whole company going under.
     
  10. mechtech

    mechtech

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    I wonder who Intel is going to buy out next?!?!?!

    TPU perhaps?!?!?!
     

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