Chipmaker Intel Corp said it has agreed to buy networking products maker QLogic Corp's InfiniBand assets for $125 million in cash to strengthen its networking and high-performance computing capabilities.
Intel said the deal is expected to close within the current quarter.
This acquisition is designed to enhance Intel's networking portfolio and provide scalable high-performance computing fabric technology, Intel said in a statement.
Intel said it expects a significant number of InfiniBand employees to join it.
QLogic said it expects the deal's impact on earnings per share to be neutral.
Shares of Aliso Viejo, California-based QLogic closed at $16.55 on Friday on the Nasdaq.
Shares of Santa Clara, California-based Intel closed at $26.38 on Friday on the Nasdaq.
(Reporting by Soham Chatterjee in Bangalore; Editing by Joyjeet Das)