In a statement released Tuesday, the money-losing JV between Ericsson and STMicroelectronics said it has agreed to sell the assets and intellectual property rights associated with its mobile connectivity GNSS business to a leading semiconductor company, without naming the buyer.
But an ST-Ericsson spokesperson told TelecomAsia.net that Intel will be purchasing the unit.
The spokesperson declined to reveal the value of the deal. But the company estimates the proceeds from the sale, combined with the avoidance of employee restructuring charges and other related restructuring costs, will reduce the JV cash needs by approximately $90 million.
The deal, pending approval from regulatory bodies, is expected to be complete in August. Upon the completion, 130 employees located in Daventry (UK), Bangalore (India) and Singapore will join Intel as a result.
Separately, Digi has contracted Ericsson to provide a M2M platform to strengthen the Malaysian telco’s M2M offerings for its growing enterprise customer base.
The Ericsson Device Connection Platform provides M2M connectivity as a service.