Intel Corporation (NASDAQ:INTC) confirmed that it purchased all the assets and intellectual property rights of ST-Ericsson’s mobile connectivity Global Navigation Satellite System (GNSS) business. ST-Ericsson is a joint venture of ST Microelectronics (NYSE:STM) and Ericsson (NASDAQ:ERIC).

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Intel’s First Acquistion after new CEO

ST-Ericsson’s GNSS business is the first acquisition made by the company under the leadership of its new CEO, Brian Krzanich since assuming his position. Krzanich succeeded Intel Corporation (NASDAQ:INTC)’s former CEO Paul Otellini after retiring during the annual shareholders meeting of the company on May 16.

Intel Corporation (NASDAQ:INTC) of ST-Ericsson did not disclose the terms of the purchase agreement.

Based on the press statement of ST-Ericsson, its team of 130 industry veterans located in Daventry, United Kingdom, Banaglore India, and Singapore will join Intel Corporation (NASDAQ:INTC) after the completion of the deal. The company also said that the proceeds from the transaction will reduce its cash needs by approximately $90 million.

ST-Ericsson said that the sale of its GNSS business, which provides chips for GPS navigation systems and wireless phones is part of restructuring efforts announced by the joint venture last March 18.

Carlo Ferro, president and CEO of ST-Ericsson said, “Today’s transaction validates the leading innovation developed by ST-Ericsson in mobile navigation systems and marks a further important step towards the execution of our shareholders’ decision to exit from ST-Ericsson.”

In addition, Ferro said, “I am pleased that this organization will continue to develop leading-edge technologies and delighted that the team found a new home at a leading player in the semiconductor industry.”

The spokesperson of Intel Corporation (NASDAQ:INTC) told Reuters that the purchase of ST-Ericsson’s mobile connectivity GNSS assets and intellectual property rights will help boost its existing GPS technology.

Krzanich said the he aims to lead Intel Corporation (NASDAQ:INTC) into a new generation by implementing a faster shift to the mobile business. He hired Mike Bell, a former executive of Palm and Apple Inc (NASDAQ:AAPL) to head a new Smart Device Unit, according to AllThingsD. The company said, “The group will be tasked with turning cool technology and business model innovations into products that shape and lead markets.”

Intel’s new generation chips coming?

During the annual shareholders meeting of the company, Krzanich acknowledged the poor performance of Intel Corporation (NASDAQ:INTC) in the mobile market, but he expressed his commitment to boost its position by enhancing its chip and manufacturing technologies. The company is expected to introduce new generation Silvermont chips for mobile devices 22nm during the latter of this year. Krzanich emphasized the Silvermont will become one of the biggest chip architecture innovation of in the history of the chipmaker.