First Security; Intel Now Buys Wireless Unit

Monday, August 30, 2010 @ 04:08 PM gHale


After purchasing security software maker McAfee Inc. for $7.68 billion, Intel Corp. is dealing for the wireless communications unit of Germany’s Infineon Technologies AG, for $1.4 billion.
Infineon’s wireless business makes chips for smart phones like Apple Inc.’s popular iPhone.
The deal, which still requires regulatory approval, should close in the first quarter of 2011.
Intel’s August 19 deal for McAfee was the largest purchase in the chipmaker’s history.
This latest deal and the McAfee pact have symmetry as mobile phones become increasingly enticing targets for hackers, security companies have been developing ways to protect those devices. With McAfee, Intel would be able to plug security into the device.
By cutting loose the wireless business, Infineon officials said the move would allow it to focus on its core automotive, industrial and chip card and security divisions. The wireless unit had revenues of $1.17 billion in the last fiscal year, which ended last September. That was one-third of Infineon’s total revenue.



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