Intel yesterday bought Case Technology, the Danish subsidiary of UK networking integrator Anite, for $72 million. It also spent $52 million on a 12.5 per cent stake in mobile communications Xircom, and will acquire warrants to bring its holding up to 20 per cent.
Intel paid cash for Case, which will boost its Fast Ethernet business and bring in valuable research and development resources in this area. Intel estimates that network products accounted for $500 million of its revenue last year.
Anite, formerly known as networking integrator Cray Communications, boasts particular expertise in cabling, voice, data and video communications covering both Lan and Wan technologies. The reseller changed its name to Anite Group last November after the end of a branding agreement with Cray Research. The group includes subsidiaries Anite Networks, Cast Technology and Anite Systems.
Frank Gill, executive vice president at Intel, hopes to use Case to expand Intel?s networking business and product lines. "Delivering high performance networks plays a key role for Intel as we work to extend the power of the Intel architecture across the enterprise and help boost the productivity of customer?s networked PCs."
Case, which sells Cisco and Stratacom lines and products carrying its own brand, will become part of Intel?s Network Products division. The division?s general manager, Mark Christensen, said Case?s products and engineers fit Intel?s strategy well.
The deal will be completed in February if Anite shareholders approve it. Intel will offer jobs to Case?s 146 staff and its managing director, Eric Fullerton, will join Intel as network systems business unit manager. He said becoming part of Intel was "a fitting tribute to the dedicated engineer" at Case.
The deals mark further diversification by Intel, which has recently invested in companies that own communications and software technologies. Analysts see its stake in Xircom, the modem manufacturer that concentrates on the portable PC market, as complementary to its chip business.
Dirk Gates, chief executive of Xircom, said Intel was particularly interested in high speed connections under development in the company's laboratories, which could link portables at 10 times current speeds.
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