Intel sells rackmount server ops to Kontron

Kontron, which expects 2009 revenue from this operation to reach higher than $40 million, said this acquisition complements its telecommunications activities and adds to its high-end AdvancedTCA and MicroTCA technologies, allowing it to offer a range of technology to international telecommunications equipment suppliers.

By Ann Steffora Mutschler, Senior Editor -- Electronic News, 10/6/2008

Chip giant Intel Corp has agreed to sell is communication rackmount server operation to Munich, Germany-based embedded computer technology company Kontron AG for an undisclosed amount, the companies said today.

Kontron, which expects 2009 revenue from this operation to reach higher than $40 million, said this acquisition complements its telecommunications activities and adds to its high-end AdvancedTCA and MicroTCA technologies, allowing it to offer a range of technology to international telecommunications equipment suppliers.

Further, with the addition of Intel’s technology, Kontron believes it will strengthen its market position embedded computing, and aims to achieve a high level of synergy in production, based on the fact that rackmount server production as yet has been taking place in Penang, Malaysia, where Kontron also has its central manufacturing hub.

Other synergies are expected as Kontron integrates the acquired South Carolina engineering research center from Intel into its North America operation.

The companies signed their agreement last Friday, and expect the deal to close early this month.