Windows 10 support ending in 2025 Hasbro, Niantic Transformers game Xbox at E3 Square Enix at E3 E3's PC Gaming Show Pre-Prime Day deals from Amazon

Excalibur and Intel form new company

Excalibur Technologies Corp. (Nasdaq: EXCA) said Monday it will form a new interactive media services company with computer chip maker Intel Corp. (Nasdaq: INTC), which is investing $150 million for a 60 percent stake in the venture.

Shares in Excalibur closed at 35 1/2 Friday, not far below its recent 52-week high of 45 3/8. The company, which competes with Documentum (Nasdaq: DCTM), FileNet (Nasdaq: FILE) and Hummingbird (Nasdaq: HUMC), makes computer software products used for multimedia information retrieval and document imaging.

The new company's technology lets content owners produce and securely sell their audio and video over the Internet.

Under terms of the deal, Intel said it will contribute its Interactive Media Services unit and take a 49 percent position in the voting stock of the new company.

Excalibur will combine its entire business operations with those of the new company, and Excalibur stockholders will receive 40 percent of the ownership in the new company. Excalibur shareholders will receive one share of stock in the new company for each Excalibur share.

Completion of the transaction and the new company's launch is expected in the third quarter of this year. Ronald J. Whittier will resign from Intel to become chairman of the board and CEO of the new company. Patrick C. Condo, current president and CEO of Excalibur will become president and COO.

-- Reuters contributed to this report.