The company will retain all of its staff and continue to operate out of its Texas headquarters.
NetEffect's products enable servers to link with 1Gb and 10Gb Ethernet connections. The company also produces iWARP, an Ethernet system designed as an alternative to Infiniband networks.
Intel plans to use the acquisition to kickstart a line of network interface cards for servers and cluster systems.
"NetEffect's role as a data communications solution provider and the company's technology will enhance Intel's current Ethernet efforts," said Tom Swinford, general manager of Intel's LAN Access Division.
"The combination of Intel and NetEffect technology will allow Intel to address our customers' most important 10Gb Ethernet needs, including server virtualisation, convergence of network and storage traffic, and server compute clusters."
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