ST-Ericsson, a joint venture of STMicroelectronics and Ericsson has officially announced the sale of the assets and intellectual property rights (IPR) associated with the business for mobile connectivity GNSS (global navigation satellite system) to an important semiconductors sector companies.
The company said in a statement, the sale of these assets is a further step in the announcements of last March 18.
The agreement also foresees the transition to the acquiring company level team consisting of 130 international experts currently operating in Daventry (Great Britain), Bangalore (India) and Singapore.
The transaction is expected to be finalized by August, after receiving a green light from the regulator.
According to the estimates of ST-Ericsson, “the earnings of the sale and have avoided the costs of staff restructuring and other restructuring costs, will reduce the cash requirements of the joint venture of approximately $90 million.”
“This transaction confirms the high levels of innovation developed by ST-Ericsson in the mobile navigation systems and marks another important step forward in the implementation of the decision of our shareholders to exit from ST-Ericsson,” said President and CEO, Carlo Ferro.
“I am pleased that the team can continue to contribute to the development of cutting-edge technologies and has found a new accommodation at a leading company in the semiconductor industry,” concluded Ferro.
Who’s buying ST-Ericsson’s geolocation business?
Semiconductor giant Intel is the mystery buyer that has emerged for ST-Ericsson’s global navigation satellite system (GNSS) business. Intel had been fingered as a possible buyer of the unit, put up for sale when joint owners Ericsson and ST Microelectronics decided to split, along with Intel’s rival AMD, graphics card maker nVidia, and Texas Instruments.
Photo credit: Fidel Ramos