Apple has officially announced that it is acquiring a majority of Intel's smartphone modem business in a deal valued at USD 1 billion.

As part of the deal, 2,200 Intel employees will join Apple, along with intellectual property, equipment, and leases, the official release notes. Apple will gain access to over 17,000 wireless technology patents, from protocols for cellular standards to modem architecture and modem operation.

Intel will retain the ability to develop modems for non-smartphone applications, such as PCs, internet-of-things devices, and autonomous vehicles. The deal is expected to close in the fourth quarter of 2019.