QLogic Sells Networking Assets to Intel for $125MMonday, January 23, 2012
Aliso Viejo-based QLogic Corp. on Monday announced a deal to sell certain assets that speed up computer performance to Intel Corp. for $125 million in cash.
The sale of QLogic’s InfiniBand business is expected to close this quarter and is subject to customary regulatory requirements and closing conditions.
The buy is expected to improve Intel’s networking technology and build scale as it seeks to boost performance speed 100 times faster than today’s supercomputer by 2018.
Santa Clara-based Intel is the world’s largest chipmaker.
A “fairly significant” amount of QLogic employees are expected to join Intel, according to spokesperson Tim Lustig.
The personnel include sales, marketing and engineering positions, he said.
QLogic counts about 400 employees in Orange County and 1,200 workers companywide.
Intel is planning to establish offices near InfiniBand operations, which are primarily located in Minnesota and Pennsylvania.
The InfiniBand business is considered a smaller operation at QLogic, which makes electronics for data storage networks.
The company battles Costa Mesa rival Emulex Corp. in bus adapter sales, a profitable piece of networking electronics.
Investors seemed to shrug off the news of the sale, as QLogic shares were relatively flat through early afternoon New York trading on a market value of about $1.6 billion.