Intel is buying LSI’s Axxia Networking Business and related assets in a move intended to enhance the firm’s networking portfolio, as it pushes forward with its software-defined infrastructure (SDI) strategy for next-generation data centres.
The chip giant announced on Wednesday the signing of a definitive agreement with Avago Technologies Limited to acquire the Axxia business for $650m in cash.
Avago is divesting the Axxia subsidiary to Intel following its recently completed acquisition of LSI, and the transaction is expected to close in the fourth quarter, depending on the usual regulatory approvals.
LSI’s Axxia Networking Business develops communications processor chips and software designed to drive software-defined networking (SDN) switches and other equipment for next-generation data centre architectures.
The acquisition by Intel would thus fit with the firm’s own vision for software-defined infrastructure as the future of the data centre, which has seen the chip giant developing open networking reference platforms based around its x86 processors and server hardware.
Adding the Axxia Networking Business capabilities to Intel’s portfolio will help accelerate the company’s strategy to become a leader in platform solutions for the network infrastructure, the firm said.
The Axxia Networking Business generated revenues of $113m for LSI during 2013 and employs approximately 650 people, according to the firm.
The deal is the latest in the tech sector in recent days after IBM bought Lighthouse Security Group to boost its cloud tools and Google picked up a pair of start-ups with a focus on the mobile market.