INTEL TO ACQUIRE SHIVA CORPORATION; BROADENS PRODUCT LINE AND CH
annels to Bring Comprehensive Data Networking Solutions to Small
to Medium Enterprises
Business Editors & Computer Writers
NOTE: Intel and Shiva executives will host a teleconference to
discuss the details of this agreement and answer questions at 10
a.m. (PDT) on Monday, October 19. Press and analysts interested
in hearing about the acquisition may call into the teleconference
by dialing 800/946-0741 to participate. International callers
dial 719/457-2649. The confirmation number is 559115 for all
callers. A full recording of the briefing can be accessed through
October 26 by calling 800/839-2434 (domestic) or 402/633-6904
(International). An electronic copy of the presentation is
available on Intel's Web site at www.intel.com/network.
HILLSBORO, Ore. and BEDFORD, Mass.--(BUSINESS WIRE)--
Oct. 19, 1998--Intel Corporation and Shiva Corporation today announced
they have entered into a definitive merger agreement.
The acquisition is aimed at rapidly expanding Intel's networking
product line with remote access and virtual private networking (VPN)
solutions for the small to medium enterprise market segment and the
remote needs of campuses and branch offices. The agreement states that
each share of Shiva stock, other than shares held by stockholders who
exercise statutory appraisal rights, will be converted into the right
to receive $6 per share in cash. Under the merger agreement, Shiva
will become a wholly-owned subsidiary of Intel, and will operate as
part of the Intel Network Products Division. The transaction is
subject to approval by Shiva stockholders, regulatory approval and
other conditions.
"We engaged Shiva because of its talented people, innovative
technology and well-developed channel," said Mark Christensen, vice
president and general manager of Intel's Network Products Division
based in Oregon. "Networking plays a strategic role in Intel's vision
of a billion connected computers. Shiva's industry-leading remote
access and VPN products, and their focus on the small to medium-sized
enterprise market segment, is a great complement to Intel's network
systems business."
"We believe that this deal is in the best interest of Shiva's
stockholders," said Shiva chairman and CEO, James L. Zucco, Jr.
"Becoming part of an industry-leading company such as Intel will
provide great benefits for Shiva customers. The bottom line for our
business access customers is that they will have an easier path to
deployment and management of integrated direct-dial and VPN solutions,
while also getting the added value of a single supplier of their
end-to-end data networking needs."
VPN technology utilizes the Internet to create secure network
connections between multiple local area networks (LANs), separated by
long distances, for the cost of a local Internet connection.
Intel does not anticipate any immediate changes to Shiva's
product line, and Shiva will continue to provide its products to
customers under existing arrangements for the foreseeable future. Over
time, Shiva's products will be integrated into Intel's extensive
networking product line, and Intel will work with Shiva customers to
ensure a smooth transition.
Intel, the world's largest chip maker, is also a leading
manufacturer of computer, networking, and communications products.
Additional information about Intel is available at
www.intel.com/pressroom.
Shiva Corporation is a leading global provider of remote access
for business. Shiva connects employees, customers, and partners
securely and reliably to business networks with integrated telephone
network and Internet-based solutions. Its products, known for their
ease of use, are inexpensive to operate, easy to manage, and have the
right features. The company was founded in 1985, and is based in
Bedford, Mass., with offices worldwide. Additional information is
available at www.shiva.com.
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