The acquisition involves a small portion of InterDigital's patent portfolio but capitalizes on the company's strategy of monetization of its intellectual property portfolio, said Scott McQuilkin, the company's senior executive vice president of strategy and finance.
By Victoria Stilwell
Intel Corp. (INTC) agreed to acquire roughly 1,700 patents and patent applications from wireless technology company InterDigital Inc. (IDCC) for $375 million in cash a s the chip-maker looks to bolster investments in its mobile business.
InterDigital shares surged 24% to $28.37 in recent trading.
The agreement involves patents that are mostly related to 3G, long-term evolution, or LTE, and 802.11 wireless technologies. The companies expect the transaction to be completed in the third quarter.
InterDigital develops and licenses wireless technology to mobile-phone makers and other manufacturers. The company generates much of its revenue from licensing patented technology. Global technology companies like Research in Motion Ltd. (RIMM, RIM.T) and Apple Inc. (AAPL) have licensed InterDigital's patents.
The acquisition involves a small portion of InterDigital's patent portfolio but capitalizes on the company's strategy of monetization of its intellectual property portfolio, said Scott McQuilkin, the company's senior executive vice president of strategy and finance.
InterDigital said in January it would abandon a strategic review it began in July and instead continue as a standalone company. The company had sought to take advantage of strong demand for patents in the wake of a successful auction of Nortel Networks Corp's patents last summer.
Google Inc. (GOOG) reportedly had preliminary discussions with InterDigital last year about a possible acquisition of the company after it failed to win the tech patents from Nortel, but instead reached a deal for Motorola Mobility Inc.
In a separate release, InterDigital said it would boost its share repurchase program to $200 million from $100 million.
Intel, considered a bellwether for the broader industry because its chips run more than 80% of the world's PCs, is joining other technology heavyweights like Microsoft Corp. (MSFT) and Apple in either seeking to leverage or acquire intellectual property.
In April, Intel bought a portfol io of patents and applications from Aware Inc. (AWRE) related wi-fi, LTE technology and wireline home networking for about $75 million.
That month Intel also reported first-quarter profit sank 13% as the chip maker saw higher expenses, along with sliding revenue in all three of its major segments.
Shares of Intel rose 0.5% to $27.47 in recent trading. The stock is up 29% in the last 12 months.
Write to Victoria Stilwell at Victoria.Stilwell@dowjones.com
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