Intel picking up Ambient for $150 million to gain DSL, modem ICs

Intel picking up Ambient for $150 million to gain DSL, modem ICs
SANTA CLARA, Calif.--Continuing its aggressive acquisitions of chip companies in communications markets, Intel Corp. today announced plans to buy Ambient Technologies Inc. for $150 million in cash. Privately-held Ambient in nearby Fremont supplies chip sets for digital subscriber line (DSL) and analog modem capabilities.

Earlier today, Intel announced an agreement to acquire India's Thinkit Technologies Inc., which develops advanced ICs for networking and communications systems, such as switches and routers (see Feb. 3, story). The Ambient purchase is now Intel's 12th acquisition agreement related to networking and communications since January 1999.

Intel said Ambient will provide it with a complementary set of silicon capabilities and modems, including a new chip set that will deliver simultaneous standards-based DSL and high-speed analog modem (V.90) capabilities.

"It is imperative that we offer customers a smooth migration path from their existing analog modems to a broadband modem," said Mark Christensen, vice president and general manager of Intel's Network Communications Group in Santa Clara. "A similar migration path was instrumental in helping businesses make the transition from Ethernet to Fast Ethernet. Ambient's integrated analog and DSL modem will provide an ideal way for customers to take advantage of high speed Internet access as it becomes available to them."

Ambient has its roots in a PC modem division that was spun out of Cirrus Logic Inc. in 1998. Employees purchased the division in January 1999 and formed Ambient. The Fremont company's engineering design center is located in Raleigh, N.C., It has sales and support offices in Taiwan and Germany.

Ambient chief executive officer Fred Schuckert will continue as general manager of the operation, reporting to Greg Lang, vice president and general manager of Intel's Network Interface Division. Under the acquisition agreement, Ambient will become a wholly owned subsidiary of Intel reporting within Intel's Network Communications Group.