Intel Corp has paid $10.9m for a 6% stake in Norwood, Massachusetts and Santa Clara-based Phoenix Technologies Ltd to ensure that the Phoenix BIOS keeps up with changes Intel may want to make from time to time in its microprocessors. It also committed to using the Phoenix BIOS firmware in the personal computer motherboards it builds for seven years. Phoenix has about 30% of the BIOS market, and to allay fears of the BIOS company’s other customers, Intel has agreed not to take its stake beyond 19.9% for two years. Intel has hitherto used either its own BIOS or one from American Megatrends Inc, Norcross, Georgia. Phoenix will train Intel’s engineers so they can convert to a Phoenix BIOS by the end of next year, and will base about 20 employees at a new system software development site in Hillsboro, Oregon, close to Intel’s motherboard design group. Intel is buying 894,971 new shares at $11.71 a share, representing the 6%, and also gets a warrant for another 1,073,965 shares. Intel is expected to pay Phoenix fees and royalties of at least $20m, though this could be significantly higher depending on shipment volumes over the term of alliance.
