Intel buys Case in network deal

Chip giant buys $52 million stake in communications manufacturer Xircom

Intel accelerated its push into the networking arena last week when it bought Case Technology, the Danish subsidiary of UK networking integrator Anite, for $72 million.

The chip giant also spent $52 million in cash on a 12.5 per cent stake in mobile communications manufacturer Xircom, and will acquire warrants to bring its holding up to 20 per cent.

The firm estimates that network products accounted for $500 million of its revenue last year.

Anite, formerly known as networking integrator Cray Communications, boasts particular expertise in cabling, voice, data and video communications covering both Lan and Wan technologies. The reseller changed its name to Anite Group last November after the end of a branding agreement with Cray Research. The group includes subsi-diaries Anite Networks, Cast Technology and Anite Systems.

Frank Gill, executive vice president at Intel, said: ?Deli-vering high performance networks plays a key role for Intel as we work to extend the power of the Intel architecture across the enterprise and help boost the productivity of customer?s networked PCs.?

Case, which sells Cisco and Stratacom lines and own brand products, will become part of Intel?s network products division. The division?s general manager, Mark Christensen, said Case?s products and engineers fit Intel?s strategy well.

The deal will be completed in February, pending approval by Anite shareholders. Intel will offer jobs to Case?s 146 staff and its managing director, Eric Fullerton, will join Intel as network systems business unit manager.