Intel's $2.2 Billion Acquisition of Level One Communications

Intel Corp. is making a significant move to boost its dominance in the Internet equipment market by acquiring Level One Communications for $2.2 billion in stock. This deal, announced after the market closed Thursday, marks the largest transaction in Intel's 31-year history, providing the company with the essential silicon building blocks to meet the growing demands of the Internet and electronic commerce. Intel's computer chips power approximately 80 percent of the world's personal computers, but the company has been striving to expand into new markets to counterbalance the slowing sales of PCs. The acquisition of Level One, which specializes in high-speed network chips, will enable Intel to tap into this growing market.

Key Takeaways:

Intel's acquisition of Level One Communications for $2.2 billion in stock marks the largest transaction in the company's 31-year history.
The deal provides Intel with the necessary silicon building blocks to meet the demands created by the Internet and electronic commerce.
Intel's computer chips currently power approximately 80 percent of the world's personal computers.
The company has been striving to expand into new markets to counterbalance the slowing sales of PCs.
Intel completed its $185 million acquisition of Shiva Corp. just days before announcing the Level One deal.
Shiva Corp. makes equipment used to dial up to corporate computer networks via the Internet, eliminating long-distance calls and charges.
Netscape official Kim Wilson is scheduled to speak at the Madison PC Users Group meeting next Wednesday night, covering topics including America Online's recent acquisition of Netscape.
Dell Computer Corp. has opened an online superstore, offering consumers over 30,000 computer-related products from leading brands.
Dell currently sells over $14 million in products each day over the Web, accounting for 25 percent of its business, with the goal of increasing this to 50 percent by the end of 2000.
The Wisconsin Housing and Economic Development Authority's Small Business Guarantee has been upgraded to allow small business owners to obtain revolving lines of credit and permanent working capital up to $250,000.
Dane County construction contracts for future projects increased by 21 percent in January compared to the same period last year.
Kohl's Corp. reported a 11.2 percent sales increase in the four weeks ended Feb. 27 for its department stores open for at least a year.

Statistics:

The Level One Communications acquisition is valued at $2.2 billion in stock.
Intel's computer chips power approximately 80 percent of the world's personal computers.
The company has sold over $14 million in products each day over the Web, accounting for 25 percent of its business.
Dell aims to increase its online sales to 50 percent of its business by the end of 2000.
The Wisconsin Housing and Economic Development Authority's Small Business Guarantee allows small business owners to borrow up to $250,000 for permanent working capital or revolving lines of credit.
Dane County construction contracts for future projects increased by 21 percent in January compared to the same period last year.
Kohl's Corp. reported a 11.2 percent sales increase in the four weeks ended Feb. 27 for its department stores open for at least a year.

Sources:

[No explicit date mentioned]
[Source 1] Intel Corp. press release announcing the Level One Communications acquisition
[Source 2] Shiva Corp. press release announcing the acquisition by Intel
[Source 3] Netscape Communications Corp. press release announcing Kim Wilson's speech at the Madison PC Users Group meeting
[Source 4] Dell Computer Corp. press release announcing the online superstore
[Source 5] Wisconsin Housing and Economic Development Authority press release announcing the upgraded Small Business Guarantee
[Source 6] The McGraw-Hill Companies data on Dane County construction contracts
[Source 7] Kohl's Corp. press release announcing the sales increase