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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