Intel will acquire navigation technology business from ST-Ericsson, gaining access to technology related to GPS and GLONASS positioning systems. Included in the deal are assets and intellectual property along with 130 “industry veterans” located in the UK, India and Singapore.
Although the price of the deal was not disclosed, ST-Ericsson said that the proceeds of the sale, along with the removal of potential restructuring costs for the unit, will reduce its cash needs by “approximately $90 million.”
Ericsson and STMicroelectronics, the two parents of ST-Ericsson, announced plans to shut down the loss-making business earlier this year, following a long period of uncertainty after STMicro announced its plans to exit the venture.
The deal is also the first announced by Intel’s new CEO Brian Krzanich, who has already restructured the company as it looks to boost position in the mobile market.
[Via: Yahoo]