About This Deal

Apple acquired Intel smartphone modem business for $1 billion, a transaction announced in July 2019, structured as asset purchase (business unit carve-out).

Intel smartphone modem business operates in Wireless / cellular modem technology, is based in Santa Clara, California, USA. Apple agreed to acquire the majority of Intel's smartphone modem business for $1 billion. About 2,200 Intel employees moved to Apple along with intellectual property, equipment and leases, expanding Apple's wireless patent portfolio to more than 17,000 wireless-technology patents. The transaction was expected to close in the fourth calendar quarter of 2019. Intel retained the ability to develop modems for non-smartphone applications such as PCs, IoT devices and autonomous vehicles.

Apple framed the deal as accelerating its in-house development of core wireless technologies; Intel described it as letting the chipmaker concentrate on 5G network infrastructure while retaining critical modem IP.

Deal Terms

Acquirer
Apple
Target
Intel smartphone modem business
Value
$1 billion
Date
July 2019
Type
Acquisition
Status
Ready

Transaction Details

Target HQ
Santa Clara, California, USA
Segment
Wireless / cellular modem technology
Structure
Asset purchase (business unit carve-out)
Announced
July 25, 2019

In Their Words

We've worked with Intel for many years and know this team shares Apple's passion for designing technologies that deliver the world's best experiences for our users.Johny Srouji, Senior Vice President of Hardware Technologies, Apple
This agreement enables us to focus on developing technology for the 5G network while retaining critical intellectual property and modem technology that our team has created.Bob Swan, CEO, Intel

Advisors

Advisory firms were not disclosed for this transaction.

Related Deals & Entities

Sources: Press release ↗

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