Orange County Business Journal

Intel in Deal for Mindspeed’s Wireless Business

Chris Casacchia Monday, December 16, 2013

The assets of Mindspeed Technologies Inc.’s wireless infrastructure business will be sold to Intel Corp., the Newport Beach-based chipmaker announced Monday.

Financial terms of the deal, expected to close in February, was not disclosed.

Santa Clara-based Intel, the world’s largest chipmakers with $53.3 billion in revenue last year, emerged as a potential strategic buyer in recent months, along with M/A-COM Technology Solutions Holdings Inc.

The Lowell, Mass.-based competitor is set to acquire Mindspeed’s other assets for $272 million in the coming weeks.

Mindspeed makes chips for routers, switches and other networking gear.

The pending sales come about eight months after Mindspeed hired Morgan Stanley as a financial adviser “to assist the board of directors in evaluating various strategic alternatives.”

The company had met several milestones in the turnaround plan it laid out about a year ago, which included reaching operating profitability, boosting sales in its high-performance analog business, and ramping up production of small cellular base stations.

Mindspeed shares are flat in afternoon trading with a market value of about $205.9 million

Intel shares are up about 1.2% to market value of about $122.29 billion