Intel said Wednesday that it had agreed to pay $650 million to acquire LSI’s Axxia network technology business from Avago Technologies.

Singapore-based Avago purchased LSI late last year $6.6 billion, and has been divesting of some of the company’s assets during the course of the year. Avago recently sold LSI’s storage assets (the prize amongst these assets was the flash storage technology) to Seagate for $450 million.

Axxia’s networking business produces SoCs that power switches, line cards and hubs which are compatible with both PowerPC and ARM architecture. Axxia also has a portfolio of wireless networking IP for networked devices, as well as routers and access points. Intel says that the acquisistion of Axxia will help it develop new technology for the next-generation of Internet of Things devices and the $16 billion market of wireless access silicon that comes along with that.

“Internet of Things. It provides the ever-expanding connectivity our world has come to rely on, and serves as the foundation for the newest and most exciting growth areas of technology today including smart cities, cars and homes, and wearable computing,” Intel’s Rose Schooler said in a blog post. “The acquisition of the Axxia Networking Business will further help Intel realize our vision of transforming wireless access into an intelligent, flexible network based on standard building blocks to fuel innovation and increase network efficiencies.”

Intel expects the deal to close in the fourth quarter of 2014.