Intel has agreed to buy PC card maker Xircom for $748 million cash.

Intel said the deal, which prices California-based Xircom at $25 per share, would help add to its line-up of products for wireless computing.

In addition, chip giant Intel will assume all existing vested and unvested employee options. The acquisition is expected to be completed in the first quarter of this year, and Xircom will become a wholly-owned subsidiary of Intel. Chipzilla was already an investor in the company.

"Xircom's strengths in small-form-factor design combined with our silicon expertise will allow us to provide customers with new and innovative solutions for linking mobile computing devices to corporate wired and wireless networks," said Mark Christensen, VP and general manager of Intel's Network Communications group.

Xircom has 1900 staff worldwide. ®

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