Old Intel adversary gets taken over

Hexagon AB is to buy Intergraph for around $2.125 billion. Hexagon is a global measurement technology company. Intergraph is a company with an interesting history.

Intergraph, in the early 1990s, created superscalar microprocessors called Clipper and the C5. A leader in the CAD/CAM/CAE systems, it turned over $1 billion in revenues in 1990.

In 1993, it started to create workstations using Intel microprocessors and in its own words became “technologically and economically locked in” to those CPUs.

In 1994 and 1995 it introduced Pentium and Pentium Pro based workstations but in 1996 “Intel began making unreasonable demands for royalty free rights to Intergraph patents in Intel microprocessors”.

That led Intergraph to sue Intel in Alabama and in 2000 it got out of hardware design and manufacturing because of the chip giant’s actions.

In 2002 Intel coughed up $300 million over Clipper and $150 million to settle another 2001 patent action. It collected more money from other IT industry players.

But that’s history. Now Intergraph will continue as a separate Hexagon division under its own name and will create vertical software for a number of industries. The acquisition by Hexagon will be completed in the third or fourth quarter of this year.