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As per the management email sent to Infineon employees this morning, Infineon and Intel have signed the contracts related to the sale of Infineon's Wireless business to Intel Corporation for a sum of approximately US Dollars 1.4bn. Initial reports suggest that IFX's Wireless division is to become a standalone business including all related functions within the Intel group. According to the latest status they expect around 3,400 Infineon employees worldwide will transfer to the new company.
Linley Gwennap says "Making it clear that money is no object in its quest to become a major player in the smartphone market, Intel plans to acquire the wireless operations of Infineon. The deal is firm but has not yet been announced, as final details are being negotiated. We believe the purchase price exceeds $1.2 billion, ranking it as one of Intel’s largest acquisitions ever. Infineon’s cellular and GPS technology will complement Intel’s Atom processor and Wi-Fi expertise, allowing Intel to deliver a complete solution for the rapidly growing smartphone and tablet-computer markets. But will Intel’s second attempt in the cellular market end better than the first? What do you think about this aquisition? Do you think Infineon's recently acquired technology penetration through partnership with major mobile players is worthwhile to be signed off for the sake of immediate money?