AMD to sell communications unit for $375m

Advanced Micro Devices on Monday said it would sell 90 percent of its communications products unit to technology buyout firm Francisco Partners for about $375m (£251m) in cash

AMD, the chief rival to Intel in the computer semiconductor market, said in a statement it would retain a 10 percent stake in the unit and will have a warrant to buy about another 10 percent.

AMD also will provide certain services to the new company under a multi-year contract, it said.

The unit produces integrated circuits for telecommunications and Internet access applications. Its 1999 revenues were $168m and first-quarter 2000 revenues were $59.5m.

Based in Austin, Texas, it has about 160 employees.

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