Processor maker Intel is all set to purchase Infineon's Wireless Solutions Business, called WLS, in a cash transaction valued at approximately USD 1.4 billion. The deal is expected to close in the first quarter of 2011. WLS sale enables Infineon to expand leading position in markets for automotive, industry and security technologies. WLS will operate as a standalone business.

Intel has stated that it is committed to serving WLS' existing customers, including support for ARM-based platforms. The acquisition expands Intel's current Wi-Fi and 4G WiMAX offerings to include Infineon's 3G capabilities and supports Intel's plans to accelerate LTE. The acquired technology will be used in Intel Core processor-based laptops, and myriad of Intel Atom processor-based devices, including smartphones, netbooks, tablets and embedded computers. The deal aligns with Internet connectivity pillar of Intel's computing strategy.

The deal will allow Intel to compete beyond its core PC and processor market and into the fast growing smartphone market. The newly acquired wireless technology, powered by Infineon, which is found in various smartphones, like the Apple iPhone and Samsung Galaxy Series, would help Intel penetrate a market devoid of the chip-maker’s presence.