Intel says it plans to buy WLS, Infineon's Wireless Solutions business, for around $1.4 billion. The deal is expected to be completed in the first quarter of 2011.
WLS, which provides baseband processors, radio-frequency transceivers, power management chips and associated software, will operate as a standalone business and will continue to serve its existing customers. The acquisition expands Intel's current WiFi and 4G WiMAX offerings to include Infineon's 3G capabilities. It also supports Intel's plans to accelerate LTE. The acquired technology will be used in Intel Core processor-based laptops and the wide range of Intel Atom processor-based mobile devices.
Peter Bauer, CEO of Infineon Technologies, said "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. 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."