Wednesday, July 8, 2009

Infineon to sell Wireline Communications Business to U.S. Investor

Neubiberg, Germany — July 7, 2009 — Infineon Technologies AG announces it has agreed to sell its Wireline Communications (WLC) business to an affiliate of U.S. based investor Golden Gate Capital for Euro 250 million. The contracts were signed today. This transaction means Infineon will focus in future on four segments: Automotive (ATV), Industrial & Multimarket (IMM), Chipcard & Security (CCS) and Wireless Solutions (WLS). In making this move, Infineon can concentrate its resources more closely on growth and leadership in these four market segments. The transaction will significantly improve Infineon’s financial situation. Closing is expected in autumn 2009.

Besides the WLC divestiture the stronger focus, enables Infineon to expand its leading technological position in the three key sectors energy efficiency, security and communications. As the Wireline Communications segment has limited dependence on the working and production processes of the company as a whole, the carve-out will involve reasonable effort.
Christian Wolff has been appointed CEO of the new company. He has led the division for many years, and has also held leading positions in the Wireline segment for 14 years. All products, business bases and development projects will be continued. Around 800 patent groups will be transferred. Therefore the customer will be guaranteed consistency in every respect.
Employment contracts for approximately 600 WLC employees will be transferred to the new company. Furthermore, an estimated 300 employees from Infineon central functions who already work on behalf of the WLC segment today are also designated to join the new company.

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