NEW YORK (Reuters) - Intel Corp said on Monday that it would buy the cable modem product line of chip maker Texas Instruments Inc in order to expand its consumer electronics chip business.
Intel did not disclose the terms of the deal, which it expects to close in the fourth quarter, subject to regulatory approval.
Intel plans to combine TI products with Intel chips for advanced television set-top boxes and modems.
The sale is part of TI's strategy of prioritizing investments in embedded processor and analog chip business, spokeswoman Kim Morgan said.
TI is already moving to exit the cellphone baseband chip business to focus on higher growth markets.
Intel said it has offered all 40 employees of the TI cable modem team the opportunity to join its Digital Home Group in their home countries, primarily Israel.
TI has a workforce of about 26,700.
Intel shares were up 1.9 percent at $19.50 in afternoon trade on Nasdaq while TI shares were up 0.86 percent at $24.49 on New York Stock Exchange.
Reporting by Sinead Carew; editing by Gerald E. McCormick, Gary Hill