Aware surges after Intel buys patents for $75 million

Aware sells $75 million worth of patents to Intel as part of the chipmaker's efforts to increase its patent portfolio in the wake of global intellectual property wars.

Aware Inc. said today it will sell a portfolio of patents, mostly in networking, to Intel for $75 million. The deal set Aware's shares surging upwards of 60 percent in afternoon trading.

Intel paid a fair sum for the patents but will benefit from the protection amidst an ongoing worldwide war of technology patents. The deal is still subject to regulatory approval, though it is thought the deal is close to completion.

The Bedford, Massachusetts company, which specialises in biometrics and telecommunications software, sold the patents as it transitions from a technology seller to a software maker, and no longer has need for the patents.

Intel will receive a wealth of LTE, Wi-Fi, and wireless home networking patents, further building the chipmaker's position in the market.

The company announced its Q1 2012 earnings this morning, showing revenue of $5.7 million, a 10 percent loss on last year's first-quarter results. Its market cap stood at $73 million yesterday, and today hit $126 million, nearly doubling the company's worth. Aware's shares almost tripled from $2.61 in morning trading to $6.35.

Intel released the much-anticipated Ivy Bridge processor this week, and acquired supercomputer maker Cray's high-performance computing interconnect technology along with its personnel, in a move seen as the company bolstering its intellectual property.