Santa Clara, Calif. — Intel Corp. announced Aug. 14 that it has agreed to buy 24-year-old Ziatech Corp. (San Luis Obispo, Calif.) for approximately $240 million in cash. The acquisition is expected to enhance Intel's presence in the growing communications infrastructure market. Pending regulatory approval, Ziatech will become a wholly owned subsidiary of Intel, and its approximately 200 employees will become part of Intel's Communications Products Group.

Ziatech designs and markets Intel-based circuit boards, hardware platforms, and development systems, which are sold mostly to telecommunication equipment manufacturers. Ziatech is also a longtime contributor to CompactPCI, an open standard for voice and data communications that seeks to provide increased reliability and performance in Internet transactions and broadband and wireless communications.

Intel states that buying Ziatech will enhance the Communications Products Group's ability to provide hardware and software Internet building blocks for telecommunications and networking. The acquisition also gives Intel an experienced workforce, engineering expertise, and intellectual property that will support its goals in communications.