InterDigital, Inc. (NASDAQ: IDCC) and Intel Corporation (NASDAQ: INTC) 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.
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include information regarding InterDigital’s and Intel’s current beliefs, plans and expectations, including with respect to (i) the completion, and expected timing of the completion, of the transaction; (ii) InterDigital’s belief that this transaction marks an important milestone of its stated strategy of expanding the monetization of its large and growing intellectual property portfolio; and (iii) InterDigital’s belief that by executing on its business plan, there is tremendous potential to expand its revenue and build shareholder value.
Forward-looking statements are subject to risks and uncertainties. Actual outcomes could differ materially from those expressed in or anticipated by such forward-looking statements due to a variety of factors, including, without limitation, (i) the approval of the transaction by regulatory authorities and the satisfaction of other closing conditions; (ii) InterDigital’s ability to enter into additional sales and/or licensing partnership or other arrangements for non-core portions of its patent assets; and (iii) changes in InterDigital’s business plan. Neither InterDigital nor Intel undertake any duty to update publicly any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by applicable law, regulation or other competent legal authority.
InterDigital develops fundamental wireless technologies that are at the core of mobile devices, networks, and services worldwide. We solve many of the industry's most critical and complex technical challenges, inventing solutions for more efficient broadband networks and a richer multimedia experience years ahead of market deployment. InterDigital has licenses and strategic relationships with many of the world's leading wireless companies. For more information, visit: www.interdigital.com.
Intel (NASDAQ: INTC) is a world leader in computing innovation. The company designs and builds the essential technologies that serve as the foundation for the world’s computing devices. Additional information about Intel is available at newsroom.intel.com and blogs.intel.com.