Intel has agreed to sell its communication rackmount server operation to Munich-based embedded computer technology company Kontron for an undisclosed amount, the companies said yesterday.

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 centre from Intel into its North America operation.

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

By Ann Steffora Mutschler, Senior Editor - Electronic News

See also: Electronics Weekly's Focus on Intel, a roundup of content on the chip giant's technology. As well as presenting news coverage from Electronics Weekly, we draw on wider resources available on the Web.

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