Apple and Intel have signed an agreement for Apple to acquire the majority of Intel’s smartphone modem business, for $ 1 billion. Approximately 2,200 Intel employees will join Apple, as part of the deal. The transaction also includes intellectual property, equipment and leases, and is expected to close in the fourth quarter of 2019, subject to regulatory approvals and customary conditions.

Combining the acquired patents for current and future wireless technology with Apple’s existing portfolio, Apple will hold over 17,000 wireless technology patents, ranging from protocols for cellular standards to modem architecture and modem operation, said the company in a statement.

Intel will retain the ability to develop modems for non-smartphone applications, such as PCs, internet-of-things devices and autonomous vehicles.

Johny Srouji, Apple’s senior vice president of Hardware Technologies, said in a statement, “Apple is excited to have so many excellent engineers join our growing cellular technologies group, and know they’ll thrive in Apple’s creative and dynamic environment. They, together with our significant acquisition of innovative IP, will help expedite our development on future products and allow Apple to further differentiate moving forward.”

[Image courtesy: Intel]