Intel has decided to purchase parts of Qlogic's InfiniBand product lines for $125 million with the idea of bolstering up its networking portfolio.
The switch and adapter product lines Intel has decided to purchase are likely to give a fresh impetus to Intel's plan of expanding its Data Centre business. Qlogic has an excellent reputation as a chip supplier in high speed switches so the acquisition is likely to sync with Intel's long term strategy.
Explaining the rationale behind the purchase Kirk Skaugen, GM of Intel's Data Center and Connected System Group mentioned: "The technology and expertise from Qlogic provide important assets to provide the scalable system fabric needed to execute on this vision," PC World reports.
InfiniBand is a networking standard which facilitates the transfer of data at high speeds over short distances and can be used to combine several systems into a powerful computer.
The all-cash sale is likely to close by this quarter and will strengthen Qlogic's overall cash position. Qlogic believes the deal will help it focus on converged networking and storage networking markets.