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Latest acquisition pushes Intel further into the Internet

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Intel is to buy IPivot for $500 million, its third Internet acquisition. The chip giant said it had entered into a definitive agreement to acquire the Californian, privately-held company which designs and makes "Internet commerce equipment". Its products make traffic between servers and the Web faster and more secure. IPivot has 100 employees and forms part of Intel's $1 billion plan to reap the higher margin rewards of helping businesses run Web sites. "Customers will return to the ecommerce sites that deliver the best performance and service," said John Miner, Intel Communication Product Group VP. "Because information must always be available and response times instantaneous, new devices are needed to manage ever larger workloads securely and efficiently. "IPivot's line-up of Internet commerce equipment, combined with our current communications product portfolio, help service providers meet these expectations." The move is Intel's eighth networking and communications related acquisition so far this year. Intel bought Internet companies Shiva Corporation last year and Dayna Communications in 1997. ®

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