Editor's note: While not an embedded Linux story per se, today's announcement (see below) by Intel of its acquisition of CompactPCI originator Ziatech, on top of the similar acquisition last year by Motorola Computer Group of ProLog (the other major pioneer in CompactPCI), illustrates the major investments being made by the two US semiconductor giants in the telecom / datacom / Internet infrastructure… computer markets. These markets are, of course, ripe for Embedded Linux penetration and are the target of multiple Embedded Linux companies' efforts to add real-time and high-availability extensions to Linux.

Santa Clara, CA — (press release) — Intel Corporation today announced it has entered into a definitive agreement to acquire privately held Ziatech Corporation in a cash transaction valued at approximately $240 million. The acquisition enhances Intel's presence in the rapidly growing market segment for communications infrastructure products.

Based in San Luis Obispo, Calif., Ziatech designs and markets a full range of Intel Architecture-based circuit boards, hardware platforms and development systems. Ziatech products are primarily sold to telecommunication equipment manufacturers who require flexible and highly reliable equipment for their communications products.

“Our customers require advanced components to build extremely reliable and fast networking and communications gear,” said John Miner, vice president and general manager, Intel's Communications Products Group. “Intel will help telecommunication providers meet their customers' rigorous networking requirements by incorporating Ziatech's lineup of Intel Architecture-based computing building blocks into our current portfolio of communications products.”

The Ziatech acquisition supports and expands Intel's Communications Products Group's ability to provide essential hardware and software Internet building blocks for telecommunications and networking. The acquisition provides Intel with a highly experienced work force, engineering expertise and intellectual property that will support Intel's business growth goals in the communications industry.

“The opportunities created by the rapid growth of the communications market are enormous,” said Ziatech Chairman Bert E. Forbes. “Ziatech's focus on this market segment complements Intel's experience so we can achieve our mutual goal of delivering Intel Architecture-based computing products to our communications customers. Together, we can assist these equipment manufacturers in being first to market with next-generation technologies.”

Pending completion of the acquisition — which is subject to customary closing conditions, including regulatory review — Ziatech will become a wholly owned subsidiary of Intel, and its approximately 200 employees will become part of Intel's Communications Products Group.

Ziatech is a 24-year-old, privately held company that serves customers such as Ericsson, Copper Mountain Networks, Nortel Networks, Lucent Technologies, Marconi/Fore, Redback Networks and other communications and technology companies. Ziatech is also a leading contributor to the CompactPCI specification, an increasingly important open standard for high-performance voice and data communications applications. The CompactPCI specification addresses the growing demand for increased reliability and performance in Internet transactions and broadband and wireless communications.

 
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