Intel has agreed to buy the assets of a UK company that makes components for building digital TVs and other consumer electronics gear, it announced Friday.
Intel will pay approximately $70 million for the client-side RF (radio frequency) components business of Zarlink Semiconductor.
The move is part of Intel's strategy to sell collections of related software and silicon parts used by manufacturers to build consumer electronics products.
The deal includes demodulators and tuners for receiving digital audio and video broadcasts to TVs, set-top boxes, recorders and other devices. They allow the devices to receive, extract and decompress the broadcast and then display or store the content, said Intel.
The business generated revenue of $53 million in 2005, according to Zarlink. Selling the assets will allow Zarlink to focus on its network communications and optical and ultra-low power businesses, it said.
Intel will pay $68 million in cash and $2 million in "other considerations," Zarlink said. The deal is subject to closing conditions, including the retention of Zarlink employees, and is expected to close in November, it said.
The acquisition would complement Intel's purchase earlier this year of Oplus Technologies, a company that makes video processing technologies.