Intel is buyer of ST-Ericsson GPS unit
ST-Ericsson is due to be closed down in the third quarter of 2013 at an expected cost to parent of STMicroelectronics NV of between $350 million and $450 million. Although no price was given for the sale ST did say it would reduce the cost of closing ST-Ericsson by about $90 million through the combination of cash received and the avoidance of employee redundancy payments and other restructuring costs.
The deal extends Intel’s position in the mobile chip business, an area that it is eager to penetrate.
In addition to the assets and IPR associated with this business, a team of 130 industry veterans located in Daventry, England, Bangalore, India and Singapore are expected to Intel’s wireless platform R&D (WPRD) organization at the closing of the transaction, which is subject to regulatory approvals and is close in August.
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