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Intel bags Infineon's WLS for Rs.6,575.64 crore

Posted: 02 Sep 2010     Print Version  Bookmark and Share

Keywords:4G WiMAX  Infineon wireless  automotive 

Intel Corp. will purchase Infineon Technologies AG 's wireless solutions business in a move that expands Intel's Wi-Fi and 4G WiMAX offerings while letting Infineon concentrate on its automotive and industrial business. A definitive agreement has been signed to transfer Infineon's wireless solutions (WLS) business to Intel for about Rs.6,575.64 crore ($1.4 billion).

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

"The global demand for wireless solutions continues to grow at an extraordinary rate," said Paul Otellini, president and CEO, Intel. "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, industrial and multi-market and chip card and security. This creates a great perspective for all Infineon customers, employees and shareholders," said Peter Bauer, CEO, Infineon.

Intel looking forward
Intel's goal is to expand its mobile and embedded product offerings to support additional customers and market segments, including smart phones, 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 stand-alone 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 base band processors, radio-frequency transceivers, power management 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 Rs.5,495.92 crore (Euro 917 million), WLS was approximately 30 per cent of Infineon's total annual revenue of Rs.18,159.90 crore (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.

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