Connor Livingston Connor Livingston is a tech blogger who will be launching his own site soon, Lythyum. He lives in Oceanside, California, and has never surfed in his life. Find him on Twitter, Facebook, and Pinterest.

Intel has acquired Axxia Networking Business for $650 million

1 min read

Intel has scooped up the LSI Axxia networking chip business from Avago Technologies for $650 million in cash. Intel announced the acquisition on Wednesday, which sees it acquire Axxia Networking Business’ ARM and PowerPC-based processors destined for enterprise and wireless network hardware. Intel is still highly dependent on the uncertain PC market and has struggled to gain traction in mobile, while its other core units serving the enterprise, such as the datacentre and Internet of Things groups, have fared markedly better.

Six hundred and fifty million dollars — all in cash. That’s the amount Intel has agreed to pony up for Avago Technologies LSI’s Axxia Networking Business. Intel is paying cash for the assets. The two are still cementing the deal, but it has been approved by the boards of both companies. Pending government regulatory approval, the two sides hope to have the deal in the can by the end of the fourth quarter. Avago, which produces semiconductors, acquired LSI late last year for $6.6 billion in cash. This deal means Avago is divesting itself of LSI’s Networking Business, which generated over $110 million last year. LSI’s Networking Business employs more than 600. Avago bought LSI to buttress its presence in cloud-based services and the mobile ecosystem. A blog post from Rose Schooler analyzing the deal and what it portends for Intel’s Data Stack put it this way: “The opportunity here is significant and wireless access is a critical component of the mobile network, which is part of a growing network market segment estimated to represent a $16 billion silicon market segment. The acquisition of the Axxia Networking Business will further help Intel realize our vision of transforming wireless access into an intelligent, flexible network based on standard building blocks to fuel innovation and increase network efficiencies.”

Source
Avatar of Connor Livingston
Connor Livingston Connor Livingston is a tech blogger who will be launching his own site soon, Lythyum. He lives in Oceanside, California, and has never surfed in his life. Find him on Twitter, Facebook, and Pinterest.

Intel and Tencent have created their own video game…

Tencent was able to use the power of its massively popular messaging and social networking services to dominate China’s video game market while it was still in...
Avatar of Alfie Joshua Alfie Joshua
58 sec read

Intel might be developing its own augmented reality headset

Intel hasn’t found much success in the mobile industry, which is why the company has turned to emerging industries like drones and wearables in an...
Avatar of Brian Molidor Brian Molidor
53 sec read

Intel and New Balance are working on a smartwatch…

Fitness tracking is one of the very few areas in which smartwatches are actually useful, and even then, smart bands can do the same...
Avatar of Lorie Wimble Lorie Wimble
54 sec read

Leave a Reply

Your email address will not be published. Required fields are marked *