Intel Corp. has exercised its warrant to buy additional shares of Xircom Inc. common stock under a February 1997 agreement that was part of Intel's initial investment in the Thousand Oaks company.
Under terms of the agreement, Intel elected to receive 514,314 shares at no additional cost in lieu of purchasing 1.5 million shares at an exercise price of $27.01. Xircom then repurchased all 514,314 shares of stock for $19.8 million, or $38.45 per share. Intel owns about 2.5 million shares of Xircom common stock acquired as part of its original investment.
"The relationship has been very successful to date in terms of technology transfer, joint development, and joint sales and marketing," said Mark Christensen, vice president and general manager of the Network Communications Group at Intel. "We look forward to continuing to maximize our technology and original equipment manufacturer relationship with Xircom in the future."
Xircom manufactures mobile communications products to connect portable computer users to corporate networks, the Internet and other online resources. The company's products are sold in more than 100 countries through a network of distributors, integrators and resellers.