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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Paul Engel who wrote (67067)	10/19/1998 3:49:00 PM
From: Joey Smith	Read Replies (1) \| Respond to of 186894

All: More details on Shiva acquisition. After a quick look at Shiva's balance sheet and income statements, seems like Intel got a good deal. Shiva was trading recently at $14. joey Intel Buys Shiva For Remote Networking (10/19/98 11:20 a.m. ET) By Kimberly Caisse, Computer Reseller News Intel plans to add remote access and virtual private network technology to its networking hardware portfolio by acquiring Shiva in a cash deal. Since it was founded in 1985, Bedford, Mass.-based Shiva has specialized in remote access and VPN hardware and software products. Intel said Shiva's expertise in these areas will let the Network Products Division (NPD) of Intel supply the technologies to small-to-medium enterprise customers that need remote access capability or connections to branch offices. Under the terms of the deal, each share of Shiva stock, except those owned by shareholders who exercise "statutory appraisal rights," will be converted to $6 per share in cash, and Shiva will become a wholly owned subsidiary of Intel, operating as an arm of the NPD. Based on the 30.3 million outstanding shares of Shiva stock, the deal is worth approximately $181.8 million. Intel wants to buy Shiva for its "well-developed channel" as well as its technology, said Mark Christensen, vice president and general manager of NPD, in a prepared statement. Shiva's products and presence in small-to-midsize enterprises will help Intel meet its goal of having "a billion connected computers," Christensen said. By teaming with Intel, Shiva's customers "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," said Shiva CEO James Zucco in the statement. Intel said it does not anticipate any immediate changes to Shiva's products, but Shiva's products eventually will be integrated into Intel's networking product line. Rumors have been swirling for the past several months about Intel buying a networking hardware company. Possible candidates included 3Com, Xircom, and The Linksys Group, all players in the small-to-midsize business market. In early morning trading, Shiva's stock was up 31 percent to 5 9/16. However, that is still way below Shiva's 52-week high of 14 3/8. News of the acquisition so far has not had much of an impact on Intel's stock. The Santa Clara, Calif.-based company's stock was up almost 1 percent to 83 11/16.