Intel Acquires Mobile Computing Gear Maker

Chip-making giant Intel Corp. has agreed to acquire Xircom Inc., a maker of mobile computing gear, for about $748 million, the companies said Monday.

The acquisition, expected to be completed by the end of March, will supplement Intel's desktop computer and server-based business, Intel officials said.

Xircom, based in Thousand Oaks, makes network adapters, modems, and cards that connect mobile computers to local or corporate networks and the Internet. The company, which has 1,900 employees worldwide and generated $492 million in revenue last year, will become a wholly owned subsidiary of Intel.

Intel already had a small stake in Xircom and resold some of Xircom's products under a previous product-development alliance.

"The acquisition of Xircom provides Intel with an award-winning lineup of products and technologies in the fast-growing mobile computing area," said Mark Christensen, general manager of Intel's network communications group.

Intel will pay $25 a share for Xircom, which closed at $18.06 Friday on the Nasdaq Stock Market, the last day of trading before the announcement.