Intel Agrees to Buy Avago’s Networking Business for $650 Million

Intel Corp. (INTC), the world’s largest computer-chip maker, agreed to acquire Avago Technologies Ltd.’s Axxia networking business for $650 million.

Intel is paying cash for the unit, which generated $113 million in revenue last year and employs about 650 people, Singapore-based Avago said yesterday in a statement.

The purchase will help Intel provide more chips to mobile-phone service providers and expand its ability to win sales in what it predicts will be a $16 billion market, according to an online statement by Rose Schooler, a vice president of the company’s Data Center Group.

Santa Clara, California-based Intel is getting a greater proportion of its server sales from makers of networking gear and storage equipment as those industries look for ways to reduce costs by using cheaper Intel chip-based servers and depending less on expensive networking equipment.

Intel shares rose 2.9 percent to $34.10 at yesterday’s close in New York. They’ve gained 31 percent this year.

To contact the reporter on this story: Ian King in San Francisco at

To contact the editors responsible for this story: Pui-Wing Tam at Jillian Ward, Stephen West

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.