The announcement came just before the release of its full-year 2000 results and as Nasdaq-listed Californian-based Xircom released Q1 2001 results.
The all-cash deal is expected to be completed in the first quarter of this year, after which Xircom will become a wholly owned subsidiary of the Network Communications Group. Xircom's board of directors has approved the $25 per share agreement and recommended stockholders accept the offer.
Mark Christensen, Intel vice-president and general manager network comms, said: "The acquisition provides Intel with an award-winning line- up of products and technologies in the fast growing mobile computing area.
"Xircom's strengths in small form factor design, combined with our silicon expertise, will allow us to provide customers with news and innovative solutions for linking mobile computing devices to corporate wired and wireless networks."
Xircom's Q1 saless were down 3.22% to $120.1m, with net income, excluding acquisition-related costs, of $200,000, compared to $15.3m, although when those costs are included it made a loss of $2.5m.
The combined strengths of Intel and Xircom will be a tremendous benefit. Customers will have access to a more complete line of products and will benefit from the innovation our companies will apply to mobile computing and wireless network.
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