Intel Corp has closed its acquisition of Level One Communications Inc, as Level One shareholders approved the deal at a special meeting yesterday. Under the terms of the offer, Level One stockholders will receive 0.86 shares of Intel common stock for each share held. Based on Monday’s closing price ahead of the vote, the transaction was valued at roughly $2.73bn, up from about $2.2bn at the time the acquisition was announced in March.
Intel has already said it expects to take a charge of between $110m and $330m in the third quarter for in-process research and development related to the deal. The chip making giant also said that the amount of goodwill and intangible assets to be amortized in connection with the deal is expected to be between $1.8bn and $2bn over an estimated five-year timeframe. Level One will operate as a wholly-owned subsidiary of Intel under Mark Christensen, vice president of the network communications group.