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Intel to acquire Fulcrum Microsystems

The private fables semiconductor expected to beef up Intel's cloud computing resources.

Intel has inked a deal to acquire Fulcrum Microsystems, a private fabless semiconductor company that is self-dubbed as the "leader in Ethernet fabrics."

For Intel, the central idea behind this acquisition is to step up its cloud computing resources.

Fulcrum already produces technologies optimized for 10 Gigabit Ethernet and 40 Gigabit Ethernet networks, which are some of the fastest-growing market segments in the data center. As IP data centers require faster and flexible solutions, the demand for these kinds of products are growing at a speedy rate.

Thus, Intel asserts in a statement that this purchase "will fulfill an important component in Intel's strategy to deliver comprehensive data center building blocks, from server processors and technologies to storage and networking."

Fulcrum's technology will be partnered with Intel's Xeon processors to meet customer demands when it comes to storage, network and server solutions.

Financial terms of the agreement have not been disclosed yet, and the deal is still subject to approval. However, it is expected to close by the end of the third quarter of 2011.

It has also not been revealed what will happen to Fulcrum's employees, who are based in Calabasas, Calif.

This story was originally posted to ZDNet's Between the Lines.