Intel has been named as the buyer of troubled silicon vendor ST-Ericsson’s navigation technology business, after being identified only as a “leading semiconductor company” in an earlier announcement.
According to Reuters, Intel has confirmed that it is the buyer for the unit, and will gain assets and intellectual property as well as 130 “industry veterans” located in the UK, India and Singapore.
While the price of the deal was not disclosed, in a statement ST-Ericsson said that the proceeds of the sale, along with the removal of potential restructuring costs for the unit, will reduce its cash needs by “approximately $90 million”.
ST-Ericsson’s Global Navigation Satellite Systems activity includes technology related to GPS and GLONASS positioning systems.
Ericsson and STMicroelectronics, the parents of ST-Ericsson, announced plans to shut down the loss-making business earlier this year, with the various parts of the business transferred to the owners.
This followed a long period of uncertainty after STMicro announced its plans to exit the venture. No buyer was forthcoming, after a sales process which saw ST-Ericsson linked with companies including Samsung.
The deal is also the first announced by Intel under the leadership of Brian Krzanich, its new CEO. The executive has already restructured the business, as it looks to boost its position in markets including mobile.