Marvell To Purchase Intel’s Communications And Application Processor Business For $600 Million
Intel’s communications and application processor business develops and sells processors for handheld devices including smart phones and personal digital assistants. The business’ processors, based on Intel? XScale technology, include the Intel? PXA9xx communications processor, codenamed “Hermon,” which powers Research in Motion’s (RIM) Blackberry* 8700 device. The Intel PXA27x applications processor, codenamed “Bulverde,” is used in the Palm Treo* smart phone, the Motorola Q* and other devices.
“Marvell and Intel have built a very strong relationship over the past six years and we are very excited to work closely with Intel in transitioning this business into Marvell,” stated Dr. Sehat Sutardja, Marvell’s chairman, president and CEO. “This transaction presents Marvell with a tremendous opportunity to become a long-term leading supplier in the cell phone and consumer electronics market segments.”
“In recent years, Intel has made significant progress and won major customers with this business,” said Sean Maloney, Intel executive vice president and general manager, Mobility Group. “The communications and application processor segments continue to present an attractive market opportunity, and we believe this business and its assets are an optimal fit for Marvell. We have a long history of working closely with Marvell and believe it has the ability to grow the business while maintaining customer commitments.”
Intel’s communications and application processor business includes approximately 1,400 employees involved in a variety of functions, including engineering, product testing/validation, operations and marketing. It is expected that the vast majority of these employees will become employees of Marvell.
Intel currently intends to receive the entire purchase price in cash. However, Intel has the option to take up to $100 million of the $600 million purchase price in Marvell common stock. Upon closing, Marvell may record a one-time charge for purchased in-process research and development expenses. The amount of that charge, if any, has not yet been determined. Intel will provide information regarding the financial impact of the transaction at a later time.
After the close of the transaction, Intel intends to continue manufacturing products currently sold by this business for handheld devices and embedded applications, and to manufacture products that are being designed into upcoming devices. This arrangement is expected to continue while Marvell arranges other manufacturing resources. Intel and Marvell do not anticipate disruptions in the supply of these products due to this planned sale.
This planned sale does not impact the ability of other Intel businesses in the networking and storage market segments to continue to use ARM*-based, Intel XScale? processors. Those Intel businesses will be able to continue licensing chip designs directly from ARM Holdings PLC and modifying the designs for their needs.
웹사이트: http://www.intel.com
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2010년 8월 24일 09:30
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