Intel to Buy Infineon Wireless Solutions for $1.4 Billion

Intel Corp. (INTC) agreed to buy cellular platform provider Infineon's Wireless Solutions (WLS) from Infineon Technologies AG for about $1.4 billion.

The purchase will allow chipmaker Intel to expand its presence in wireless devices such as smartphones and tablets, the companies said in a statement.

"The global demand for wireless solutions continues to grow at an extraordinary rate," Intel CEO Paul Otellini said. "The acquisition of Infineon's WLS business strengthens the second pillar of our computing strategy -- Internet connectivity -- and enables us to offer a portfolio of products that covers the full range of wireless options."

WLS had revenue of 917 million euros ($1.2 billion) in the last financial year.

The companies expect the deal to close in the first quarter of 2011.