Cupertino and Santa Clara, California – Apple and Intel have signed an agreement that Apple will acquire the bulk of Intel's smartphone modem business. About 2200 Intel employees will join Apple, along with intellectual property, equipment, and leases. The transaction, valued at $ 1 billion, is expected to close in the fourth quarter of 2019, subject to governmental approvals and other customary terms, including works councils and other relevant consultations in certain jurisdictions.
By combining acquired patents for current and future wireless technology with Apple's existing portfolio, Apple will hold over 17,000 wireless technology patents, ranging from mobile standards protocols to fashion architecture and modem operations. Intel will retain the ability to develop modems for non-smart applications, such as PCs, internet-by-thing devices, and autonomous vehicles.
"This agreement allows us to focus on developing technology for the 5G network while retaining critical intellectual property and modem technology created by our team," said Intel CEO Bob Swan. "We have long respected Apple, and we are confident that they will provide the right environment for this talented team and these key assets in the future. We look forward to doing our utmost for 5G where it more closely matches the needs of our global customer base, including network operators, manufacturers of telecommunications equipment and providers of cloud services. "
"We've been working with Intel for many years and know that this team shares Apple's passion for designing technologies that deliver the world's best experiences for our users," said Johny Srouji, Apple's senior vice president of Hardware Technologies. Apple is excited to have so many great engineers joining our growing mobile phone group and know they will enjoy Apple's creative and dynamic environment. They, along with our substantial acquisition of innovative IP, will help accelerate the development of future products and allow Apple to distinguish ahead. "
This press release contains forward-looking statements, meaning the Private Law Securities Litigation Reform Act of 1