Intel is taking steps to acquire wireless assets in order to compete with chip rivals such as Qualcomm and Mellanox in the mobile device and data center market.
Intel on Monday announced that it had agreed to buy the wireless assets of Mindspeed Technologies, which offers base-station hardware. The assets will help Intel products process tasks in the data center and transmit data over wireless networks to mobile devices.
Intel got into negotiations to acquire the wireless assets after Mindspeed reached an agreement last month to be acquired by M/A-COM Technology Solutions Holdings for an equity value of US$272 million, or $5.05 a share.
Intel has been taking on data center and wireless technology by acquiring business units or intellectual property from other companies. Intel in 2011 completed the acquisition of Infineon Technologies' wireless division for $1.4 billion. The acquisition gave Intel the ability to build communications chips. Intel is now offering 3G and LTE modems for phone makers. The chip maker also hopes to integrate the modem technology inside its low-power Atom chips, much like Qualcomm is doing with Snapdragon chips.
In addition to bringing communication capabilities to mobile devices, Intel is also building up its data center assets to serve the mobile market. Mindspeed's technology will fit into base stations and communications equipment.
"Through this acquisition, Intel will gain a wireless infrastructure team with deep experience in delivering signal processing-related technologies and IP for base stations," wrote Rose Schooler, vice president and general manager of Intel's Communications and Storage Infrastructure Group, in a blog entry.
Terms of the deal were not disclosed, and the company did not say when the acquisition would close.