by CIO Staff

Intel Sells Communications Unit to Marvell for $600M

News
Jun 27, 20061 min
Mergers and Acquisitions

Intel will sell its communications and application processor business to Marvell Technology Group for US$600 million, the companies announced Tuesday.

The move is part of an Intel effort to shore up its core business in the face of increasing competitive pressure from Advanced Micro Devices and a slowing global PC market. Intel identified mobile computing, in addition to the traditional PC market, as an area that it will focus on.

On Marvell’s part, the buy will give it a leg up in the market for handheld computing devices such as PDAs and smart phones. The deal is expected to close in the fourth quarter. Marvell will also assume some of the unit’s liabilities.

The Intel unit produces processors built on the company’s XScale technology, and include the PXA9 processor used in Research in Motion’s BlackBerry device. The unit employs about 1,400 employees, most of whom are expect to work for Marvell after the purchase is complete, according to the companies.

-Marc Ferranti, IDG News Service (New York Bureau)

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