Tags: Intel | Avago | Networking | Axxia

Intel to Buy Avago Networking Unit Axxia for $650 Million

Wednesday, 13 Aug 2014 07:43 PM

Intel Corp., the world’s largest computer-chip maker, agreed to acquire Avago Technologies Ltd.’s Axxia networking business for $650 million.

Intel is paying cash for the unit, which generated $113 million in revenue last year and employs about 650 people, Singapore-based Avago said in a statement.

The purchase will help Intel provide more chips to mobile- phone service providers and expand its ability to win sales in what it predicts will be a $16 billion market, according to an online statement by Rose Schooler, a vice president of the company’s Data Center Group.

Santa Clara, California-based Intel is getting a greater proportion of its server sales from makers of networking gear and storage equipment as those industries look for ways to reduce costs by using cheaper Intel chip-based servers and depending less on expensive networking equipment.

Intel shares rose 2.9 percent to $34.10 at the close of trading in New York. They’ve gained 31 percent this year.

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Intel Corp., the world's largest computer-chip maker, agreed to acquire Avago Technologies Ltd.'s Axxia networking business for $650 million.
Intel, Avago, Networking, Axxia
156
2014-43-13
Wednesday, 13 Aug 2014 07:43 PM
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