Intel

(INTC) - Get Report

said Monday it is acquiring

VxTel

, a privately held semiconductor company, for about $550 million in cash.

Shares of Intel recently climbed 31 cents to $30.25 in pre-open

Instinet

activity. The shares finished at $29.94 in Friday's regular trading on

Nasdaq

.

The leading chipmaker, based in Santa Clara., Calif., did not provide other financial details of the acquisition, which remains subject to regulatory approval and other closing conditions.

The Fremont, Calif.-based VxTel makes digital signal processors, or DSPs, that enable communication companies to send voice and data over packet-based networks, such as the Internet. The company's high-performance DSP also enables more than 2000 simultaneous voice connections on a single card, and is more efficient and less costly, Intel said.