Santa Clara, California–Intel Corp. and Xircom, Inc. today announced that they have entered into a definitive agreement under which Intel, through a wholly owned subsidiary, will acquire Xircom for $25 per share in an all-cash tender offer valued at approximately $748 million. The acquisition complements Intel’s existing desktop PC and server-based network access businesses by enabling Intel to provide new products for notebook and mobile computing uses.

Xircom, based in Thousand Oaks, CA, is a supplier of PC cards and other products used to connect mobile computing devices to corporate networks and the Internet.

“The acquisition of Xircom provides Intel with an award winning lineup of products and technologies in the fast growing mobile computing area,” says Mark Christensen, Intel vice president and general manager of Intel’s Network Communications Group. “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.”

“The combined strengths of Intel and Xircom will be a tremendous benefit to our customers,” says Dirk Gates, Xircom chief executive officer. “Customers will have access to a more complete line of products and will benefit from the innovation our combined companies will apply to mobile computing and wireless networking.”

The acquisition is expected to be completed during the first quarter of this year. Upon completion of the acquisition, Xircom will become a wholly owned subsidiary of Intel. The organization will be part of Intel’s Network Communications Group.