Wireless technology company InterDigital announced on Monday, June 18, that it has agreed to sell roughly 1,700 wireless technology patents to Intel, in a $375 million deal. The announcement drove InterDigital shares up 27 percent. Intel has been trying to extend its reach beyond computers and into the mobile market, while InterDigital has been seeking to cash in on its wireless patents due to the recent surge in interest in such intellectual property.

"The acquisition of this portfolio of InterDigital's technologies by a global technology leader affirms the efforts of our research and development team which actively shares our innovations with the worldwide standards bodies, defining technologies that are central to the world's major wireless systems and devices," Scott McQuilkin, Senior VP of Strategy and Finance at InterDigital, said in a statement.

"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. By executing on our business plan, which has been broadened to include patent sales, licensing partnerships and other possibilities, we see tremendous potential to expand revenue and build shareholder value."

Back in January, InterDigital announced it had failed to find a buyer for the entire company, but it would continue to seek buyers for its patent portfolio. Some started to question the company's ability to complete a patent sale after that announcement, but Monday's news drew a round of applause from InterDigital investors.

"These patents will support Intel's strategic investments in the mobile segment," said Intel's Vice President and General Counsel Doug Melamed. "The addition of these patents expands our already large, strong and diverse portfolio of intellectual property."

InterDigital and Intel expect to complete the transaction in the third quarter this year, after meeting customary closing conditions and obtaining any required regulatory approvals.

Also on Monday, June 18, King of Prussia, Pennsylvania-based InterDigital announced that its board had authorized a doubling of its share buyback from $100 million to $200 million. The company also said it would keep its revenue target of $71 million for the second quarter unchanged, including the sale of other patents in a separate $9 million deal. InterDigital shares climbed $6.36 to $29.24 in afternoon trade on Nasdaq following the announcement, while Intel shares gained 16 cents to $27.50.