Intel buys NetEffect for $8 million

Big-time money maker of modern times, Intel, has just confirmed that it has acquired all the assets of NetEffect, a network connectivity solutions company specializing in Ethernet products and technologies for server compute clusters. By paying just(?) $8 million, Intel has secured itself NetEffect's knowledge and product portfolio which includes 1 Gigabit and 10 Gigabit Ethernet (GbE) adapters and 10 GbE Application Specific Integrated Circuits (ASICs).

"NetEffect's role as a data communications solution provider and the company's technology will enhance Intel's current Ethernet efforts," said Tom Swinford, general manager, Intel LAN Access Division. "The combination of Intel and NetEffect technology will allow Intel to address our customers' most important 10 Gigabit Ethernet needs, including server virtualization, convergence of network and storage traffic, and server compute clusters."

Through the deal, all 30 NetEffect employees will join Intel and continue their work in Austin, Texas.