Avago sells Axxia Networking unit to Intel for $650m

by CBR Staff Writer| 15 August 2014

By acquiring Avago’s LSI'S Axxia Networking Business Intel is aiming to increase its product portfolio.

Intel will acquire analogue semiconductor device maker Avago Technologies LSI's Axxia Networking Business for $650m, to strengthen its chip offering to mobile phone service providers.

Avago had bought LSI for $6.6bbn last December to expand its presence in mobile ecosystem and cloud-based services.

With the acquisition, Intel aims to increase its network efficiency to transform wireless access into a flexible and intelligent network base. According to Intel, wireless access is a significant component of mobile network, which is estimated to represent $16bn of the silicon market segment. This acquisition will help Intel provide better services to networking gear and storage equipment makers.

The Axxia Networking Business generated revenues of $113m during 2013 and has 650 employees.

The $650m acquisition has been approved by both Intel and Avago's board of directors and the deal is expected to close in the fourth quarter of 2014.

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