Intel to Buy Ziatech

Intel Corp. agreed to buy Ziatech Corp. of San Luis Obispo for $240 million in cash, a deal that would give the world’s largest chip maker more products for setting up communications networks. Closely held Ziatech makes circuit boards and development systems used by telecom equipment makers, including Ericsson, Nortel Networks Corp. and Lucent Technologies Inc. Ziatech’s 200 workers would become part of Intel’s communications products group. Shares of Santa Clara, Calif.-based Intel rose $3.13 to close at $66.94 on Nasdaq.