Infineon Technologies and Intel Corp. (http://www.intel.com) have entered into a definitive agreement to transfer Infineon's Wireless Solutions (WLS) business to Intel in a cash transaction valued at approximately US$1.4 billion.

WLS, a provider of cellular platforms to top tier global phone makers, will operate as a standalone business serving its existing customers. WLS will also contribute to Intel's strategy to make connected computing ubiquitous from smartphones to laptops to embedded computing, says Paul Otellini, Intel president and CEO.

Intel's goal is to expand its mobile and embedded product offerings to support additional customers and market segments, including smartphones, tablets, netbooks, notebooks and embedded computing devices, he adds. Through this effort, Otellini says Intel will pair WLS' 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.

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.