Infineon Acquires Ericsson Microelectronics
Ericsson (Stockholm, Sweden) and Infineon Technologies AG (Munich, Germany) announced that they have entered a long-term strategic partnership. Infineon will acquire the core business of Ericsson Microelectronics (Stockholm, Sweden), Ericsson's internal semiconductor supplier, for approximately Euro 400 million. The transaction will be executed in a share-based deal. Approval by the responsible anti-trust authorities is pending, and closing is expected during summer 2002.
Infineon's wireless activities have been focusing on the high-volume business of semiconductors for mobile phones. The acquisition allows Infineon to expand its business in Bluetooth solutions and radio frequency components for mobile phones as well as mobile infrastructure.
"Ericsson is the leading infrastructure technology provider and we have found Infineon to be the ideal supplier and partner for our state-of-the-art solutions," stated Kurt Hellstrom, CEO and president of Ericsson. "We view this as a significant step in further focusing on our core business."
"This strategic partnership will significantly strengthen our communications business," commented Ulrich Schumacher, president and CEO of Infineon Technologies. "In addition to building on our wireless design expertise, Infineon will team up with Ericsson as a leader in the wireless world and become a strategic supplier."