Intel continues to make a splash in the M&A market

After lowering revenue expectations for its current quarter just last week, Santa-Clara, CA-based Intel announced early this morning that it is acquiring the wireless communications unit of Infineon Technologies AG, a maker of chips for smart phones (including the iPhone), for US$1.4 billion in cash.

The move comes just 11 days after Intel announced its blockbuster takeover of security software maker, McAfee, for US$7.68 billion. 

With its core PC chip business under pressure, the move signals that Intel is looking to focus increased attention on markets beyond the struggling PC market. 

Intel president & CEO, Paul Otellini, provided some insight on the acquisition:

"The global demand for wireless solutions continues to grow at an extraordinary rate. The acquisition of Infineon's WLS business strengthens the second pillar of our computing strategy -- Internet connectivity -- and enables us to offer a portfolio of products that covers the full range of wireless options from Wi-Fi and 3G to WiMAX and LTE. As more devices compute and connect to the Internet, we are committed to positioning Intel to take advantage of the growth potential in every computing segment, from laptops to handhelds and beyond."

The acquisition still requires regulatory approval, but the company expects it to close in the first quarter of 2011.

Infineon's wireless unit generated US$1.17 billion in sales in its 2009 fiscal year.