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Intel snaps up Xircom

Chip giant eats modem maker for breakfast

In a move aimed at bolstering its mobile communications offerings, Intel has announced the takeover of Xircom.

The all-cash transaction is valued at £500 million, the companies said in a joint news release.

Xircom, based in the intriguingly named Thousand Oaks, California, is a supplier of PC modem and network cards connecting mobile computers to corporate networks and the Internet.

The acquisition complements Intel's existing network access businesses because it now will be able to provide products for notebook and mobile computing, according to Intel. Xircom will become a subsidiary of Intel, and the organisation will be part of Intel's Network Communications Group.

Intel expects the acquisition to be completed in the first quarter of this year.


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