Intel to buy networking firm Dayna

Hoping to push its networking business into smaller and smaller companies, Intel Corp. announced today it will acquire Dayna Communications Inc. which specialises in sales to that market.

"We see small business as one of the fastest growing and most significant portions of the total available market," said Jim A. Johnson, business unit manager of the network products division at Intel.

The acquisition, for an undisclosed sum, is expected to be completed in November, pending approval by Dayna's shareholders. Dayna, based in Salt Lake City, will become a wholly-owned subsidiary of Intel operating in the network products division.

Dayna's products, including adapters, switches, hubs and Internet connectivity equipment, will continue to be sold and supported under the Dayna brand, but Intel-branded products should begin to appear in the first half of next year, Johnson said.

While there is little overlap between the products offered by Intel and Dayna, some future products may use Intel technology designed for larger companies and scaled down to fit in with Dayna's customers.

"This plays very close to our core strategy, which is that PCs, by and large, are becoming connected PCs, whether it's in a small business, a big business or at home. We want to make sure we have product offering for all segments," Johnson said.

"The feedback at the channel level and from our customers is that people have been asking for products specifically for small business. We have a few but Dayna has the expertise and the products," he said.