InterDigital sells wireless patents to Intel for $375m

Intel is to buy $375 million worth of wireless technology patents from InterDigital, whose shares rose by more than 29 percent following the news that it would increase its stock buyback program.

InterDigital said on Monday it will sell a piece of its wireless patents to Intel for $375 million in cash.

It follows a recent expansion by Intel to expand its chip business beyond traditional PCs into tablet devices and smartphones.

The 1,700 patents in total relate to 3G, long-term evolution (LTE) networking, and 802.11 technologies, the company said. It added that the deal only represented "a small portion" of its overall patent portfolio.

InterDigital's shares were suspended for a few moments at 12:10 p.m. ET ahead of the news that the company would increase its stock buyback program to $200 million.

Shares in InterDigital rose by more than 29 percent 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 after it previously tried and failed.

InterDigital said in July 2011 it was looking at a possible sale of the company or its patent portfolios to seek a boost to its value, reports Reuters.

The deal is expected to close in the third-quarter, subject to regulatory approval.

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