INTEL and Symbol Technologies Sign Multi-Year Joint Development Pact For Advanced Wireless Networking Products
$100 Million Investment In Symbol By Intel Also Planned
SANTA CLARA, Calif. and HOLTSVILLE, N.Y.--(BUSINESS WIRE)--Feb. 14, 2000--Intel Corporation (NASDAQ: INTC) and Symbol Technologies (NYSE: SBL) today announced the two companies have entered into a multi-year joint development agreement to create advanced wireless networking capabilities and products. Intel plans to invest $100 million in Symbol (equaling approximately 1.4 million shares, representing an ownership stake of about 1.5%).
Intel and Symbol will devote a total of more than 200 silicon, hardware and software engineers, as well as complementary teams of marketing and sales professionals to develop wireless high-speed local area networking (LAN) technologies. The technology will help allow mobile, handheld and desktop computers to communicate with both corporate networks and the Internet without requiring a direct wire connection.
The two companies will focus their efforts on developing silicon, adapter cards and "access points" (devices that serve as a central base station or gateway to wired networks) required for advanced wireless networking. Intel also plans to sell the underlying silicon chips for building these capabilities into other products. The jointly developed products will be based on the IEEE 802.11 wireless networking standard and will include 2.4 and 5.2 gigahertz wireless LAN technology.
"As networking and the Internet become increasingly crucial to transacting day-to-day business activity, Intel believes the ability to connect to corporate networks and the Internet without the physical limitation of wired connections is essential," said Mark Christensen, vice president and general manager of Intel's Network Communications Group. "The wireless technology that Intel and Symbol are developing will significantly increase employee productivity and reduce the expense associated with hardwiring new networks."
"Combining Symbol's leading wireless LAN technology with Intel's recognized silicon expertise will accelerate the mass production of high-speed, low-cost wireless LAN chipsets," said Tomo Razmilovic, Symbol's president and chief operating officer. "By working with a global technology leader like Intel, we can dramatically increase the use of wireless LANs worldwide and expand the vertical markets for Symbol's bar code scanner-integrated mobile computing devices. This partnership moves the world closer to ubiquitous, wireless Internet connectivity -- anywhere, anytime."
Under the joint development agreement, Intel and Symbol will have equal rights in perpetuity to the products and intellectual property the two companies jointly create, as well as the right to manufacture and sell derivatives of those products. The agreement also includes an option, under certain circumstances, for Intel to purchase a portion of the Symbol's Wireless division.
Specific financial terms of the accord were not disclosed. The agreement is subject to Hart Scott Rodino approval and certain customary closing conditions |
