Apple has announced that it will acquire the majority of Intel’s smartphone business.
The transaction is valued at $1 billion and is expected to close at the end of 2019, subject to regulatory approvals.
As a result of the acquisition, 2,200 Intel employees will join Apple, and the iPhone manufacturer will gain the smartphone modem division’s intellectual property, equipment, and leases.
Including the portfolio of technology gained through this transaction, Apple now holds over 17,000 wireless technology patents. The company noted that Intel would still retain its capacity to develop modems for non-smartphone applications.
“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,” said Intel CEO Bob Swan.
“Apple is excited to have so many excellent engineers join our growing cellular technologies group, and know they’ll thrive in Apple’s creative and dynamic environment,” said Apple hardware technologies senior vice president Johny Srouji.