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Kontron takes over Intel's rackmount server biz

Posted: 08 Oct 2008 ?? ?Print Version ?Bookmark and Share

Keywords:rackmount server business? IP network? communication platform?

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

Kontron's management expects for 2009 revenue from this new acquisition of more than $40 million. To help ensure a continuous supply of products and a high-quality of support and services to Intel customers, both companies 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 benefits for customers are tremendous," said Kontron CEO Ulrich Gehrmann. "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 multicore server designs will firmly establish Kontron the leading provider of multicore carrier-grade server platforms. After many years of working closely with Intel, we fully anticipate strong favorable long-term growth."

The addition of Intel communication servers will be an excellent 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.

"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, VP of the digital enterprise group and general manager of the embedded and communications group at Intel.

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