Infineon sells its wireline communications business to U.S. Investor Golden Gate Capital

To solve its financial woes and to focus more on other key sectors, Infineon has sold its wireline communications (WLC) business to an affiliate of U.S. based investor Golden Gate Capital for Euro 250 million. Now the products/domains of focus for Infineon are automotive electronics, Industrial, security and identification devices, and Wireless communications.

"The divestiture of the WLC segment is an important step in our overall refinancing process. Furthermore, our stronger focus enables us to expand our leading technological position in the three key sectors energy efficiency, communications and security", says Peter Bauer, CEO of Infineon Technologies AG. As the Wireline Communications segment is relatively independent from the working and production processes of the company as a whole, the carve-out will involve reasonable effort.

"WLC is well positioned to stand on its own feet. With the financial backing of Golden Gate Capital, we are well positioned to continue our investment in innovative broadband products for our customers, and therefore benefit from growth opportunities in the market," says Christian Wolff, designated CEO of the new company. Wolff has led the division for many years, and has also held leading positions in the Wireline segment for 14 years.

"Golden Gate Capital is extremely excited to be partnering with Wireline management to build upon the advanced technologies, innovative products, and collaborative customer relationships that make Infineon Wireline a leader in its markets," says John Knoll, Managing Director of Golden Gate Capital.

In this shrinking business of wireline communications Infineon has a worldwide market share of more than 20 percent and achieved a positive result in the past few quarters.

All products, locations and development projects will be continued by the new company. Around 800 patent families will be transferred to the new company.

All the 900 employees working in this domain are designated to join the new company.