Avago to sell LSI's Axxia Networking Business to Intel for $650 mln

Wed Aug 13, 2014 7:44pm EDT

Aug 13 (Reuters) - Avago Technologies Ltd said it agreed to sell LSI's Axxia Networking Business to chipmaker Intel Corp for $650 million in cash.

The Axxia business mainly includes networking and infrastructure products for wireless networks and enterprise gateways.

Avago bought LSI in December last year for $6.6 billion, and has been divesting units as it seeks to counter volatility in its main wireless business and focus on the fast-growing storage chip market.

The company, which designs and develops analog semiconductors and was once part of Hewlett-Packard Co, said in May it would sell LSI's flash storage business to hard drive maker Seagate Technology Plc for $450 million in cash.

The companies said the deal is expected to close in the fourth calendar quarter of 2014. (Reporting by Ramkumar Iyer in Bangalore; Editing by Lisa Shumaker)