Intel to acquire German company for $1.4 billion

Over webcast, technology giant Intel announced Monday that it would purchase the wireless business of Infineon, a German chip maker, for roughly $1.4 billion.

"The deal aligns with the Internet connectivity pillar of Intel's computing strategy," the acquisition announcement states. As a growing number of devices were connecting to the Internet, Intel saw wireless connectivity's growth potential, Paul Otellini, head of Intel, told the New York Times.

Intel expects the deal to close by the first quarter of 2011.

With Infineon's Wireless Solutions, Intel is better positioned to compete in the market for smartphone chips.