InterDigital Inc., the wireless- technology company that tried to find a buyer for itself, surged the most in 11 months after agreeing to sell about 1,700 patents to Intel Corp. (INTC) for $375 million.
The shares climbed 27 percent to $29.08 at the close for the biggest increase since July 20. The stock had dropped 47 percent this year through June 15.
The transaction involves patents for 3G and LTE, or long- term evolution, wireless, King of Prussia, Pennsylvania-based InterDigital and Santa Clara, California-based Intel said today in a statement. Separately, InterDigital said it would double its existing share repurchase program to $200 million.
InterDigital had said in July that it hired Evercore Partners Inc. (EVR) and Barclays Capital to explore a possible sale of the company, seeking to capitalize on a boom in demand for patents. InterDigital’s patents cover technology used to transfer information wirelessly.
“This transaction, which involves a small portion of our overall patent portfolio, marks an important milestone of InterDigital’s stated strategy of expanding the monetization of its large and growing intellectual property portfolio,” said Scott McQuilkin, senior executive vice president for strategy and finance at InterDigital, in the statement.
To contact the editor responsible for this story: Tom Giles at firstname.lastname@example.org