PNC, Intel to Invest $2.2 Billion in Broadband and Mobile Networks
PNC and Intel have agreed to merge their global wireless broadband and wireless Internet businesses to create Broadband Capital.
The new entity will be headed by Michael Karp, Intel’s chairman and chief executive officer.
Broadband Investment will be focused on investment in wireless broadband networks, including those in Europe, China, Latin America and Asia, the companies said in a statement.
Broadfield Broadband will serve as the financial arm of Broadband Ventures, which will oversee the transaction.
The deal is expected to close in early 2019.
The merged company will become Broadband Networks Inc. Broadfields investments include a $1 billion investment in the company in January and a $2 billion purchase of an asset in December.
BroadBroadspectacom, a unit of Broadcom, is a unit owned by PNC that has been in operation since 1998 and has developed the Broadband IP network and related technology.
Broadspectacomm also has investments in other Broadband investments, including a $100 million purchase of the wireless business in 2014 and a further $250 million purchase in 2016.
“This transaction will create a global leader in broadband and mobile networks, and it will accelerate Broadband’s focus on creating an inclusive, inclusive broadband ecosystem that helps millions of Americans reach their full potential,” Karp said.
Broadcom CEO Brian Wieser said that he and his company are thrilled to join forces with Intel to continue advancing the business.
With the merger, Intel will continue to have access to the technology and expertise that has helped it achieve its greatest success in the past 25 years, he said.
Intel also said it will retain its 25% equity interest in Broadcom as well as 25% of Broadfield.
Under the deal, Broadband Investments will continue its business of acquiring, developing, and distributing wireless broadband network equipment and related equipment, including equipment to deploy and manage broadband Internet networks.
Broadnet Ventures will retain 25% ownership in Broadnet, with the remaining 25% being invested in Broadfield’s investment portfolio.
For more news on PNC Broadband, follow us on @PNCbroadband and @Intel, or connect with us on Facebook and LinkedIn