Intel to acquire Xircom for $748 million

Intel Corp. (Santa Clara, CA; www.intel.com) and Xircom Inc. (Thousand Oaks, CA; www.xircom.com) have agreed that Intel, through a wholly owned subsidiary, would acquire Xircom for approximately $748 million.

Intel Corp. (Santa Clara, CA; www.intel.com) and Xircom Inc. (Thousand Oaks, CA; www.xircom.com) have agreed that Intel, through a wholly owned subsidiary, would acquire Xircom for approximately $748 million. The acquisition complements Intel's existing desktop PC and server-based network access businesses by enabling it to provide new products for notebook and mobile computing uses. Xircom is a supplier of PC cards and other products used to connect mobile computing devices to corporate networks and the Internet.

"The acquisition of Xircom provides Intel with a lineup of products and technologies in the fast growing mobile computing area," says Mark Christensen, vice president and general manager of Intel's Network Communications Group. "Xircom's strengths in small-form-factor design combined with our silicon expertise will allow us to provide customers with innovative solutions for linking mobile computing devices to corporate wired and wireless networks."

"The combined strengths of Intel and Xircom will be a tremendous benefit to our customers," said Dirk Gates, Xircom chief executive officer. "Customers will benefit from the innovation our combined companies will apply to mobile computing and wireless networking."

The acquisition is expected to be completed in the first quarter of this year. Upon completion of the acquisition, Xircom will become a wholly owned subsidiary of Intel. The organization will be part of Intel's Network Communications Group.

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