Intel Acquires LSI’s Axxia Networking Business Unit From Avago For $650 Million
Avago owns an extensive portfolio of intellectual property serving markets in wireless communications, wired infrastructure, enterprise storage, and industrial. The Axxia business, which Avago came to own when it acquired LSI at the end of last year for $6.6 billion, is mostly involved in enterprise networking products and solutions.
The deal with Intel falls in line with Avago's desire to divest parts of LSI. And for Intel, the chip maker adds IP to its portfolio that it hopes will accelerate its strategy to become a leader in platform solutions for the network infrastructure. Looking longer term, Intel wants to help operators build a more efficient, scalable, and flexible network to keep up with future bandwidth demands, the company said.
According to Avago, the Axxia Networking Business Networking Business generated $113 million in revenues last year and is home to around 650 employees.