Microdyne sells ISA cards to Intel as buyout plan collapses

Virginia-based vendor Microdyne has sold off its Fast Ethernet ISA adaptor card product line and technology to Intel, while its NE2000 Plus series has been bought by the Chinese vendor Sundaynet Computer Company.

Alan Dickie, controller of the networking division at Microdyne, said: 'Intel already had an OEM agreement on the 10/100Mbit Ethernet card and now we have sold the product line it has exclusive rights.'

Microdyne had attempted a buyout of the networking division in June, but as talks with a prospective Taiwanese buyer broke down the vendor chose to sell off individual product lines (PC Dealer, 17 September).

Dickie said: 'Our first preference would have been to sell off the unit but we had to take the other route. If we don't sell off the products, the distribution channel will dry up.'

Commenting on speculation that National Semiconductors had expressed an interest in purchasing the networking division, Dickie said: 'We would have welcomed that, or if it wanted to buy any of the product lines, but it wasn't the case.'

Intel is hoping to garner up $1 billion in annual sales this year from its networking division. It acquired Ethernet product manufacturer Case Technology for $72 million earlier in the year, as well as purchasing a 12 per cent stake in Xircom for 52 million.