German based Infineon Technologies has announced that it is to acquire the core business of Ericsson Microelectronics in a E400 million share based deal. The deal also signals the creation of a new strategic partnership between the two companies which will increase co-operation in the development of 2.5 and 3G solutions. Infineon will now become a strategic supplier of wireless infrastructure and mobile phone components for Ericsson.
Infineon will acquire Ericsson Microelectronics’ products, as well as the company’s R&D and manufacturing equipment. 700 Ericsson staff will also now work for the German company.
The deal is expected to be completed during the summer and is subject to approval by antitrust authorities.