Electronics Production | October 06, 2008
Kontron to acquire Communication Rackmount Server Operation from Intel
Kontron is to acquire the communication rackmount server operation from Intel. An agreement to this effect was signed Friday, October 3rd, in Santa Clara, California.
The closing is expected to take place in early October, 2008 subject to any applicable regulatory review and standard closing conditions. Kontron’s Management expects for 2009 revenue from this newly acquired operation of more than USD 40 million. With this acquisition, Kontron is optimally complementing its important telecommunications activities. The rackmount servers add to the company’s product offering of Kontron’s high-end AdvancedTCA and MicroTCA technologies. Kontron can offer now the whole range of technology to international telecommunications equipment suppliers. Kontron will achieve a high level of synergies 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. Further synergies are expected with the integration of the South Carolina engineering research center in Kontron’s North America operation.