Intel Acquires Ambient Technologies for $150 Million to Enhance Broadband Access

Strategic Insights -

Intel Corporation's acquisition of Ambient Technologies, a privately held company, marks a significant step in its efforts to expand its presence in the broadband Internet access market. The deal, valued at approximately $150 million, complements Intel's existing product portfolio by adding Ambient's highly integrated digital subscriber line (DSL) silicon solutions and analog modems. These technologies will enable users to access high-speed Internet content, which is expected to revolutionize the way people connect and communicate. The acquisition is seen as a necessary interim step towards widespread deployment of broadband Internet access.

Key Takeaways:

  • Intel has acquired Ambient Technologies, a privately held company, in a cash transaction valued at approximately $150 million.
  • Ambient's highly integrated DSL silicon solutions and analog modems will provide users with high-speed Internet access, which is up to 150 times faster than a 56k modem.
  • The acquisition complements Intel's existing product portfolio, including the Intel PRO/DSL 3100 Modem, which supports the G.Lite industry standard.
  • Fred Schuckert, CEO of Ambient, will continue as general manager of the company, reporting to Greg Lang, vice president and general manager of Intel's Network Interface Division.
  • Under the agreement, Ambient will become a wholly owned subsidiary of Intel, reporting within Intel's Network Communications Group.
  • Ambient employees will continue to work as employees of the new subsidiary, with Engineering Design Centers and sales and support offices located in Raleigh, N.C., Taiwan, and Germany.

Statistics:

  • The acquisition is valued at approximately $150 million.
  • Ambient's highly integrated DSL silicon solutions and analog modems will deliver high-speed Internet access, up to 150 times faster than a 56k modem.
  • The Intel PRO/DSL 3100 Modem, which supports the G.Lite industry standard, will be a key component of Intel's effort to extend its leadership in business connectivity to the residential and small business segments.

Sources:

  • Business Wire, "Intel to Acquire Ambient Technologies", February 3, 2000.
  • Ambient Technologies, Inc., www.ambient.com.
  • Intel, "About Intel", www.intel.com/pressroom.