Ericsson has today signed an agreement to sell its microelectronics operation Ericsson Microelectronics to Infineon Technologies AG. The deal is expected to be closed during this summer and the value of the deal is approximately EUR 400 million (SEK 3600 million) in a share-based deal. By this action, Ericsson and Infineon form a long-term strategic partnership.
The discussions between Ericsson and Infineon confirmed on Friday, June 7, has resulted in this deal, which is in line with the ongoing process at Ericsson to focus towards its core business of providing systems and services for telecom operators. The agreement creates a strong supplier and partner to Ericsson in a wide range of products to secure the supply of important components to Ericsson's systems and mobile applications.
"Ericsson is the leading infrastructure technology provider and we have found Infineon to be the ideal supplier and partner for our end-to-end solutions in mobile and broadband Internet," says Kurt Hellström, CEO and President of Ericsson. "We view this as a significant step in further focusing on our core business."
The purchase includes Ericsson Microelectronics AB in Sweden and related global activities. Infineon Technologies takes over approximately 700 employees, also products, research & development, and manufacturing including production equipment. However, at the two manufacturing facilities in Stockholm 600 manufacturing staff will remain Ericsson employees.
Approval by the responsible anti-trust authorities is pending, and closing is expected during summer 2002.
"This strategic partnership will significantly strengthen our communications business," says Dr. Ulrich Schumacher, CEO and President of Infineon Technologies. "In addition to building on our wireless design expertise, Infineon will team up with Ericsson as a leader in the wireless world and become a strategic partner."
Ericsson is shaping the future of Mobile and Broadband Internet communication through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication companies in the world.
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