Intel To Acquire Infineon's Wireless Solutions Business

Intel Corporation (NASDAQ: INTC) has announced its acquisition of Infineon's wireless solutions business for $1.4B in cash and is expecting to close the deal in 1Q11, according to JP Morgan.

Intel has spent around 50% of its $18.3B cash on hand in the last few weeks, which also included the purchase of McAfee (NYSE: MFE) for $7.68B. JP Morgan forecasts that although some customers may flee due to the deal, there should be minimal impact on EPS, which is currently estimated for C2011 at $1.60.

JP Morgan forecast estimates remain unchanged until the deal actually closes in 1Q11.

JP Morgan remains Neutral with a $17 price target.

Intel Corporation closed yesterday at $18.37.