Intel buys QLogic's InfiniBand assets for $125 million

Summary:Intel is to buy QLogic's InfiniBand assets for $125 million in cash, in a deal that is expected to close this quarter.

Intel announced today it is to acquire the InfiniBand business from networking company QLogic for $125 million in cash, as the chip-making giant seeks to strengthen its high-performance computing portfolio.

InfiniBand is a fabric technology that can be used to connect servers in high-performance computing environments.

QLogic said that the sale will allow the company to increase its focus on growth opportunities in the datacenter space and also enterprise Ethernet, as well as the storage area networking products arena and converged networking.

QLogic's president and chief executive officer, Simon Biddiscombe, said: "After the sale, our cash position will be further strengthened and we expect the impact on earnings per share to be neutral. In addition, the sale of these assets to a leading technology innovator and recognized [high-performance computing" leader will provide a greater investment stream in high performance fabrics for InfiniBand partners and customers."

Intel said the deal is expected to close within the current quarter. It added: "This acquisition is designed to enhance Intel's networking portfolio and provide scalable high-performance computing fabric technology," Intel said in a statement."

The chipmaker said it expects a "significant number" of InfiniBand employers to join the company.

Related:

Topics: Networking, Intel

About

Zack Whittaker writes for ZDNet, CNET, and CBS News. He is based in New York City.

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