InterDigital Agrees to $375 Million Patent Transaction with Intel
Global Technology Leader to Acquire Approximately 1,700 Patents and Applications Related to 3G, LTE, 802.11 from InterDigital
KING OF PRUSSIA, Pa. & SANTA CLARA, Calif., Jun 18, 2012 (BUSINESS WIRE) -- InterDigital, Inc. IDCC +28.37% and Intel Corporation INTC +0.40% today announced that certain of InterDigital's subsidiaries have signed a definitive agreement to sell to Intel roughly 1,700 patents and patent applications for $375 million in cash.
The agreement involves patents primarily related to 3G, LTE and 802.11 technologies. InterDigital is an active developer of advanced wireless technologies including WCDMA (Wideband CDMA), HSDPA (High Speed Download Packet Access) and HSUPA (High Speed Upload Packet Access) 3G technologies as well as LTE (Long Term Evolution) and LTE-Advanced 4G technologies.
"The acquisition of this portfolio of InterDigital's technologies by a global technology leader like Intel affirms the efforts of our research and development team which actively shares our innovations with the worldwide standards bodies, defining technologies that are central to the world's major wireless systems and devices," said Scott McQuilkin, Senior Executive Vice President, Strategy and Finance at InterDigital. "This transaction, which involves a small portion of our overall patent portfolio, marks an important milestone of InterDigital's stated strategy of expanding the monetization of its large and growing intellectual property portfolio. By executing on our business plan, which has been broadened to include patent sales, licensing partnerships and other possibilities, we see tremendous potential to expand revenue and build shareholder value."
"These patents will support Intel's strategic investments in the mobile segment," said Doug Melamed, Intel Senior Vice President and General Counsel. "The addition of these patents expands our already large, strong and diverse portfolio of intellectual property."
The companies expect the transaction to be completed in third quarter 2012, subject to customary closing conditions and any required regulatory approvals.