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Marvell to purchase Intel's smart handheld processor biz

Posted: 29 Jun 2006 ?? ?Print Version ?Bookmark and Share

Keywords:Marvell? Intel? agreement? application processor? handheld device?

Marvell Technology Group Ltd and Intel Corp. announced that they have signed an agreement for Intel to sell its communications and application processor business to Marvell for a purchase price of $600 million plus the assumption by Marvell of certain liabilities.

The planned sale will give Marvell a presence in the market segment for processors used in smart handheld devices. The sale also will enable Intel to focus its investments on its core businesses. The transaction is expected to close in approximately four to five months and is subject to regulatory review and other normal closing conditions.

Intel's communications and application processor business develops and sells processors for handheld devices including smart phones and PDAs. It 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.




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