A little while back, we told you about Intel selling off several of their communication businesses as part of a massive restructuring effort. Of interest to BlackBerry Cool readers was their mobile processor division, which produces chips used in recent BlackBerrys like the 8700 and 7130. That division has now been sold to Marvell for a cool $600 million.
The price is expected to be all cash, although Intel has an option to receive up to $100 million of it in Marvell common stock. Intel’s communication and application processor business employs about 1,400 people, the “vast majority” of which will be transferred to Marvell. The deal should close within five months, the companies said.
“In recent years, Intel has made significant progress and won major customers with this business,” Intel said. “The communications and application processor segments continue to present an attractive market opportunity, and we believe this business and its assets are an optimal fit for Marvell. We have a long history of working closely with Marvell and believe it has the ability to grow the business while maintaining customer commitments.”