Intel bought the GPS business of ST-Ericsson

29 May, 2013

ST-Ericsson estimates the proceeds from the sale, combined with the avoidance of employee restructuring charges and other related restructuring costs, will reduce the joint venture’s cash needs by approximately $90 million

GNSS 130 employees are anticipated to join Intel

Brian M. Krzanich
Brian M. Krzanich

Intel is the mysterious buyer of the Global Navigation Satellite System (GNSS) business of ST-Ericsson. Inter Corp. spokesman confirmed Reuters that Intel bought the unit. This ended rumors since yesterday, when ST-Ericsson, a joint venture of STMicroelectronics and Ericsson, announced the signature of a definitive agreement to sell the assets and intellectual property rights (IPR) associated with its GNSS business to a leading semiconductor company.

In addition to the assets and IP associated with this business, a team of 130 industry veterans located in Daventry (UK), Bangalore (India) and Singapore are anticipated to join Intel at closing of the transaction.

The closing of the transaction is expected in August, 2013. ST-Ericsson estimates the proceeds from the sale, combined with the avoidance of employee restructuring charges and other related restructuring costs, will reduce the joint venture’s cash needs by approximately $90 million. It may indicate that Intel pays less than $90 million to GNSS.

This may be another bold move of Brian M. Krzanich, the new chief executive officer (CEO) of Intel Corporation. He was quoted saying that Intel should re-focus in the mobile segment. In recent years Intel failed to become a leader in the growing market of smartphones and tablets. GNSS technology is crucial for location services and application in every mobile platform.

Share via Whatsapp

Posted in: Business , News , Semiconductors