Intel buys Trillium for US$300 Million

Intel Corp. announced today that it is acquiring communications software company Trillium Digital Systems Inc. for US$300 million in cash and common stock.

Intel hopes the acquisition of the privately held company will complement its hardware business with communications software, support and services to allow Intel to provide more complete platform-level offerings to its telecommunications and networking customers, it said in a statement.

Source code developed by Trillium is currently used in more than 500 projects, including wireless, Internet, broadband and telephony products. Most of Trillium’s software is designed for easy implementation of standards-based communication protocols, including ATM (Asynchronous Transfer Mode), IP (Internet Protocol), ISDN (Integrated Services Digital Networks) and Java.

Ten-year-old Trillium counts companies including 3Com Corp., Cisco Systems Inc., L.M. Ericsson Telephone Co., and AT&T Corp. among its customers.

With the completion of the acquisition, Trillium will become a wholly owned subsidiary, as part of Intel’s Network Processing Group. Trillium’s software architecture will be implemented into the Intel Internet Exchange (IX), the framework for designing networking and telecommunications equipment using embedded versions of Intel’s processor family.

The acquisition is subject to regulatory approval and customary closing conditions.

Intel, in Santa Clara, Calif., can be reached at Trillium, in Los Angeles, can be reached at