KING OF PRUSSIA, Pa. (AP) -- Intel Corp. is buying roughly 1,700 patents and patent applications from wireless technology company InterDigital Inc. for $375 million in cash, the companies announced Monday.

Intel said the deal helps strengthen its mobile business and expands its already large intellectual property portfolio. The companies expect the transaction to be completed in third quarter of 2012.

InterDigital said the deal involves a small portion of its patents and is part of its broader plan to make money from its intellectual property through sales, licensing agreements and other deals.

As a result of the deal, the company also said that it is doubling the size of its stock repurchase program. It was previously authorized to buy back $100 million of its shares and will now buy back up to $200 million.

Shares of InterDigital, based in King of Prussia, Pa., soared. Its stock was up $6.07, nearly 27 percent, to $28.95 by midday.

Shares of chipmaker Intel, based in Santa Clara, Calif., rose 12 cents to $27.46.