Intel agrees to acquire VxTel for $550 million

Intel has entered into an agreement to acquire privately held VxTel in a cash transaction worth approximately $550 million.

Intel has entered into an agreement to acquire privately held VxTel, a developer of Voice over Packet (VoP) products, in a cash transaction worth approximately $550 million.

VxTel has developed a digital signal processor (DSP), as well as software and reference designs that help telecommunication equipment manufacturers deliver voice and data services over a unified packet-based network.

VxTel’s DSP solution was specifically designed for voice and data processing and is targeted at computationally-intensive, high-aggregation, carrier-grade applications such as voice processing, data/xDSL/cable modulation and demodulation, and wireless baseband processing.

The company claims that its VxTel VoP solution enables more than 2000 simultaneous voice connections on a single card, making it the highest-density solution on the market today.

The acquisition itself is subject to regulatory approval and certain closing conditions. Upon completion, VxTel will become a wholly owned subsidiary of Intel reporting into the Telecom Component Division of Intel’s Network Communications Group.