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Intel to Acquire Danish Optical Communications Chip Maker
Mar 2000
SANTA CLARA, Calif., Mar. 17 -- Intel Corp. has entered into a definitive agreement to acquire GIGA A/S, a Copenhagen, Denmark-based NKT company, in an all-cash transaction valued at approximately $1.25 billion. Founded in 1988, GIGA specializes in the design of advanced high-speed communications chips used in the optical networking and communications products that direct traffic across the Internet and corporate networks. GIGA supplies OC-48 (2.5-Gb/s) and OC-192 (10-Gb/s) products to telecommunications and data communications customers for use in applications based on IP, asynchronous transfer mode (ATM), dense WDM and SONET/SDH transmission standards.
Commenting on the acquisition, Mark Christensen, vice president and general manager of Intel's Network Communications Group, said, This new optical communications chip design capability, combined with our existing Level One Communications Inc. design team, gives Intel key new products and expertise to address the rapidly growing demand for high-bandwidth communications infrastructure. Following the close of the transaction -- which is subject to regulatory approval and standard closing conditions -- GIGA will become a subsidiary of Intel, reporting within Level One Communications Inc. Level One is a wholly owned Intel subsidiary and part of Intel's Network Communications Group.

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