Intel has sold its media and signalling business to
Eicon Networks Corporation, as it continues to streamline its
operations to cut costs.
Intel’s media and signalling business includes all of the
product lines from Intel’s Dialogic acquisition, as well as Host
Media Processing (HMP) software and HMP-enabled blades.
Intel’s complete line of SS7, PBX integration and gateway
solutions are also included in the sale.
Eicon said the acquisition, for an undisclosed sum, would allow it
to become a leading player in the media processing and signalling
market segment.
With Eicon’s complementary Diva Server line of products, it is
anticipated that the acquisition will enable Eicon to provide
enhanced enterprise and service provider offerings to current Eicon
and Intel customers, as well as future customers.
Eicon Networks currently specialises in providing media
processing hardware and software that enables developers and system
integrators to deliver applications for voice, speech,
conferencing, VoIP, fax and IP-based solutions.
Intel’s media and signalling business employs around 600
employees involved in a variety of functions, including
engineering, product testing and validation, operations and
marketing.
It is expected that a “significant number” of these employees
will become employees of Eicon. Redundancies are also expected.
Intel is currently involved in an ongoing headcount reduction
programme after recently laying off 1,000 managers across its
business.
It wants to be in a better position to compete against smaller
chip competitor AMD, which is taking market share from Intel in all
market segments. Selling the niche media and signalling business
will help Intel to cut operational costs further.
The Eicon acquisition is expected to be completed within six
weeks.
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