California. Apple has announced the acquisition of chip-maker Intel's smartphone modem business for $1 billion.

Approximately 2,200 Intel employees will join Apple, along with intellectual property, equipment and leases, the Cupertino-based iPhone maker said in a statement today.

The transaction is expected to close in the fourth quarter of 2019.

"This agreement enables us to focus on developing technology for the 5G network while retaining critical intellectual property and modem technology that our team has created," said Intel CEO Bob Swan.