Carl and ALL: Looks like Intel is putting some of that cash to work...
INTEL GOES SHOPPING FOR NETWORK MOBILITY -- In two moves aimed at increasing its presence in the mobile network, Intel agreed to acquire Copenhagen-based Fast Ethernet switch and router company, Case Technology for $72M and to purchase a 12.5% interest in PC Card modem vendor, Xircom, Inc., with warrants to obtain an additional 7.5%. The initial equity investment in Xircom is valued at $52M or 2.5M shares of Xircom common stock. The subsequent investment is equivalent to 1.5M shares. In addition, Intel and Xircom signed a three-year technology and multi-million dollar OEM agreement to develop advanced mobile business computing products. The acquisition of Case, a subsidiary of Anite Group plc, is expected to be complete by the end of February. Case Technology will become part of Intel's Network Products division. All 146 Case Technology employees will be offered new employment contracts with Intel. Eric Fullerton, Case Technology's managing director, will join Intel's Reinier Tuinzing in managing the Network Systems operation and will hold the title of Network Systems business unit manager, Network Products division. Also today, Xircom reported its 1Q97 earnings: net sales were up 65% to $62.3M (vs. $37.7M for the year-ago quarter) and net income was $4.5M, or 22 cents per share (vs. a net loss of $760,000, or 4 cents per share). Intel: 503 264-7549.
Regards, Michael |
