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Kontron AG, a leading provider of embedded computing and open modular solutions, has reached an agreement with Intel Corp. to acquire its communication rackmount server operation of 1U, 2U carrier-grade rackmount and IP network security server products. The transaction, subject to regulatory review and standard closing conditions, is expected to close shortly.

“The benefits for customers are tremendous. Customers will continue to receive the latest technology in computing platforms while being able to choose from a single source. Both the existing Intel products and any future Intel Architecture multi-core server designs will firmly establish Kontron the leading provider of multi-core carrier-grade server platforms. After many years of working closely with Intel, we fully anticipate strong favorable long-term growth,” said Ulrich Gehrmann, chief exec of Kontron.

Kontron’s Management expects for 2009 revenue from this new acquisition of more than $40 million. This acquisition is considered a strategic opportunity and is expected to close shortly. This intact group in Intel, with around 70 employees, has many years of expertise in world-class server technology, including high-density mechanical and electronic design, thermal and vibration analysis, and implementation of high-standards of secure and uninterruptible operations.

To help ensure a continuous supply of products and a high-quality of support and services to Intel customers, both Intel and Kontron will work jointly in the transition period to provide a smooth and seamless hand-over of products, projects, and customer and distributor relationships. Customers will also be backed by Kontron’s strong global presence, flexible supply chain capabilities; including a high-volume manufacturing services facility in Penang, Malaysia, and engineering and technical support services.

The addition of Intel communication servers will be a superb complement to the Kontron family of AdvancedTCA and MicroTCA communication platforms and industrial rackmount servers. It will enable Kontron to further address the needs of tier 1 and tier 2 telecom and network equipment providers who need to deliver compelling solutions for the growing communications market.

The Intel line of carrier-grade servers provide a choice of quad-core Intel Xeon processors. These 1U and 2U servers are NEBS-3 and ETSI-compliant and are an excellent choice for demanding central office environments and the limited space of highly available data centers. They support a diverse set of applications that include: unified messaging, S(service)oIP, call control, media and signaling gateways, and operational system support.

The Intel family of IP network security servers comprised of 1U, 2U servers are ideally suited for enterprise application acceleration and content caching, as well as for running Telco SoIP, such as IMS, IPTV, video on demand (VoD), SIP application servers, IP-PBX, and IP-PSTN gateways, the companies said.

The Intel carrier-grade rackmount and network server team is mainly centered in Columbia, South Carolina, and Penang, Malaysia. The team includes various employees engaged in engineering, product development, product marketing, technical support and operations.

“Intel is pleased to reach this agreement with Kontron, an Intel embedded communications alliance premier member and one of the world’s leading embedded computer companies. We will work closely with them to transition support for customers of these products,” said Doug Davis, vice president of the digital enterprise group and general manager of the embedded and communications group at Inte

Tags: Intel, Kontron

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