NEW YORK — In a move to improve its network to provide for future bandwidth demands and satisfy a strengthening server market, Intel will acquire LSI's Axxia Networking Business and related assets for $650 million in cash.
“Adding the Axxia Networking Business capabilities to Intel s portfolio will help accelerate the company's strategy to become a leader in platform solutions for the network infrastructure,” a release stated. “By providing a comprehensive product portfolio, Intel aims to help operators create a more efficient, scalable and flexible network.”
Intel's purchase will help provide more chips to handset service providers and expand sales potential, Rose Schooler, a vice president of the company's Data Center Group, wrote. Intel is making a larger portion of server sales from makers of networking gear and storage equipment looking to reduce costs by with cheaper Intel chip-based servers, Bloomberg reported.
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— Jessica Lipsky is an associate editor at EE Times.