Wednesday, October 15, 2008

Intel Buys NetEffect

Santa Clara-based Intel announced Wednesday that it has acquired the assets of NetEffect, a provider of Ethernet products focused on the server compute cluster market. Intel said it paid $8M for NetEffect's assets, which includes the firm's Ethernet product portfolio, intellectual property, and technology. The products include 1 Gigabit and 10 Gigabit Ethernet adapters with support for iWARP, a low latency protocol based on Ethernet positioned as an alternative to Infiniband. Intel said that it will hire thirty employees from NetEffect, which will continue to be based in Austin, Texas. NetEffect had raised more than $55M in venture funding from Austin Ventures, Duchossois Technology Ventures, Granite Ventures, Infinity Capital, JatoTech, Texas Instruments, TI Ventures, and TL Ventures.