SANTA CLARA, Calif. -- Intel Corp. here added another component to its Internet communications strategy by entering into a definitive agreement to acquire the Telecom Component Products division of Stanford Telecommunications Inc., a cable and broadband wireless chip maker. Specific financial terms were not disclosed.
The TCP group, based in Sunnyvale, Calif., provides silicon components for head-end equipment used by cable companies and broadband wireless service providers, and customer premise equipment (CPE) such as cable modems and set-top boxes.
The all-cash acquisition will add new wide-area network (WAN) solutions at the physical, formatting and switching layers of Intel's recently announced Internet Exchange (IX) Architecture, a set of "blueprints" for designing networking and telecommunications equipment using reprogrammable silicon.
"The acquisition of Stanford Telecom's cable and broadband wireless silicon division provides Intel with additional key silicon building blocks necessary to supply the rapidly growing bandwidth demands created by the Internet and e-commerce," said Mark Christensen, vice president and general manager of Intel's Network Communications Group. "Stanford's silicon components will strengthen our capabilities as a leading provider of broadband technology for voice, data and video applications."
Stanford agreed to sell the TCP business as it prepares to merge Newbridge Networks Inc., the Canadian wide-area network solutions provider. Under the agreement, Newbridge will retain Stanford's Wireless Broadband Products (WBP) and Satellite Personal Communications (SPC) groups. Stanford's TCP division will be integrated into Intel's Network Communications Group.
"The cable and broadband wireless market segments share similar technical challenges," said Conrad Lewis, executive vice president, Access Products Group, Newbridge Networks. "We believe the combination of Stanford's silicon technology and Intel's technical and marketing strengths will help overcome these challenges to accelerate the deployment of cable and broadband wireless solutions industry-wide.