Following a seemingly hot weekend with last-minute negotiations, Intel and Infineon have finally signed a deal through which the former will acquire Infineonís Wireless Solutions (WLS) business for about $1.4 billion in cash money.
Following the closure of the deal, WLS is expected to operate as a standalone business and help expand Intel's product offering aimed towards mobile and embedded products like smartphones, tablets, netbooks, notebooks and embedded computing devices. WLS' product portfolio includes baseband processors, radio-frequency transceivers, power management integrated circuits (ICs), single-chip solutions and system software.
"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."
This is Intel's second major acquisition announcement in under two weeks, the first being that of security software company McAfee (worth $7.68 billion).
Intel expects Infineon's WLS to join its empire in Q1 2011.