Intel Set to Buy 1400 Powerwave-Owned Telecom Patents

Zacks Equity Research

Thu, Sep 11, 2014, 5:00 PM

Chipmaker Intel Corporation (INTC) recently announced that it has entered into a definitive agreement to acquire a portfolio of patents, originally owned by Powerwave Technologies, through a partner of the Gores Group private equity firm. However, the financials of the deal were not disclosed.

The portfolio comprises 1,400 wireless patents and patent applications, which the Gores Group had purchased in 2013 after Powerwave Technologies filed for Chapter 11 bankruptcy and was shut down. These patents are related to telecommunications infrastructure technologies, which include mounted amplifiers, antenna structures, power amplifier configurations, crest factor reduction and as well as digital pre-distortion circuitry.

It unclear what Intel intends to do with these patents but as the chipmaker strives to gain traction in the mobile sector, the move could prove to be beneficial.

Powerwave Technologies Inc., a California-based company, specialized in producing antennas and amplifiers for wireless communications. It developed equipment to boost signal strength for wireless phone and data networks. However, it filed for bankruptcy after being unable to generate sufficient revenues in Jan 2013 and ultimately shuttered all its operations in May 2013.

The latest telecommunications patent deal is, however, not the first for Intel. In 2012, Intel acquired 1,700 patents from InterDigital primarily related to 3G, long-term evolution ("LTE"), and 802.11 technologies for $375 million. Intel also purchased patents related to LTE, Wi-Fi, wireless and wireline home networking for a sum of $75 million from Aware Inc., a signal processing company.

Intel currently sports a Zacks Rank #1 (Strong Buy). Other stocks worth considering in the space include Silicon Motion Technology Corp. (SIMO), NVE Corp. (NVEC) and Avago Technologies Ltd. (AVGO), all carrying the same rank as Intel.

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Intel Set to Buy 1400 Powerwave-Owned Telecom Patents

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