Intel is set to buy US$375 million worth of wireless technology patents from InterDigital, whose shares rose by more than 29 per cent, following the news that it would increase its stock buyback program.
InterDigital announced the sale of a piece of its wireless patents overnight after a recent expansion by Intel expanding its chip business, beyond traditional PCs and into tablet devices and smartphones.
The 1700 patents in total relate to 3G, long-term evolution (LTE) networking, and 802.11 technologies, the company has revealed. It added that the deal only represented "a small portion" of its overall patent portfolio.
InterDigital's shares were suspended for a few moments, ahead of the news that the company would increase its stock buy-back program to US$200 million.
Shares in InterDigital rose by more than 29 per cent during the same hour.
It should come as relief to InterDigital, who said in January that it would continue looking for buyers for its patent portfolio, having previously tried and failed.
In July 2011, InterDigital said that it was looking at a possible sale of the company, or its patent portfolios, to seek a boost to its value, according to Reuters.
The deal is expected to close in the third-quarter of this year, subject to regulatory approval.
Via ZDNet US