German semiconductor manufacturer Infineon Technologies AG has agreed to buy the microelectronics division of Swedish telecommunication equipment manufacturer L.M. Ericsson Telephone Co.
Infineon, in Munich, will acquire the core business of Ericsson Microelectronics in a share-based deal worth around 400 million (US$380 million), subject to approval by the relevant antitrust authorities, the companies said in a statement Wednesday. The deal is expected to close in the third quarter.
Ericsson Microelectronics supplies its parent company in Stockholm with radiofrequency microelectronic components for mobile phones, power amplifiers and fixed-line broadband communications devices. It is one of the largest suppliers of components for Bluetooth personal area networking technology, and the acquisition will allow Infineon to expand its share of this market, the companies said.