The closing of the transaction is subject to regulatory approvals and standard conditions and is expected to be completed in August, 2013. Neither company revealed the price,, but ST-Ericsson estimates the proceeds from the sale, combined with the avoidance of employee restructuring charges and other related restructuring costs, will reduce the joint venture?s cash needs by approximately $90 million.
STMicro and Ericsson announced in March they were winding down ST-Ericsson, which has been hit by a big drop in orders from Nokia and has struggled to compete with other chipmakers.
"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" commented Carlo Ferro, President and CEO of ST-Ericsson. "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."