Wednesday, October 15, 2008

NetEffect Acquired by Intel

Austin-based NetEffect, a developer of iWARP capable Ethernet adapters, has been acquired by Intel, Intel said late Wednesday morning. Intel said it would pay $8M for the assets of NetEffect, and also hire 30 of the firm's employees, mostly engineers. According to Intel, those employees will continue to be based in Austin. NetEffect was developing Ethernet technology based in iWARP, which is an Ethernet alternative to the low latency Infiniband protocol. Intel said the buy includes NetEffect's Ethernet product portfolio, intellectual property and technology, including NetEffect's adapters and ASIC technology. 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.