German chip maker Infineon Technologies has agreed to sell its Wireline Communications (WLC) business to an affiliate of US-based investor Golden Gate Capital, a San Francisco-based private equity investment firm with approximately $9bn (£5.5bn) of capital under management.
Over the past few years, Infineon’s WLC segment has increased its worldwide market share, which is currently more than 20 per cent. As a result, Infineon claims that WLC is number one in the target market of broadband access solutions.
Carriers worldwide use WLC products to offer VoIP telephony services, fast internet connections and interactive services via DSL. Despite the economic downturn, the segment achieved a positive result in the past few quarters.
All products and development projects will be continued by the new company and around 800 patent families will be transferred.
Employment contracts for approximately 600 WLC employees will be transferred to the new company, as will an estimated 300 Infineon employees.
The €250m (£215m) sale leaves Infineon to focus on four industry segments: automotive (ATV), industrial and multimarket (IMM), chipcard and security (CCS) and wireless solutions (WLS).
PMI falls as manufacturers feel the squeeze
17 months or two and a half years - which is it?