Marvell Buys Intel Processor Unit

Intel(INTC Quote) agreed to sell a division that makes processors for handheld devices to Marvell(MRVL Quote) for $600 million.

The price is expected to be all cash, although Intel has an option to receive up to $100 million of it in Marvell common stock. Intel's communication and application processor business employs about 1,400 people, the "vast majority" of which will be transferred to Marvell. The deal should close within five months, the companies said.

Intel's operation manufactures processors used in Research In Motion's(RIMM Quote) BlackBerry 8700, the Palm(PALM Quote) Treo and the Motorola(MOT Quote) Q, among other things. ...