SANTA CLARA, Calif. -- Cortina Systems Inc. and Intel Corporation today announced that they have completed the sale of product lines and associated assets of Intel's optical-networking components business to Cortina.
Cortina has emerged as a leading supplier of advanced communications semiconductor solutions for the carrier infrastructure market segment. The acquisition will give Cortina a large portfolio of enterprise and infrastructure communications products and will position it to become a leading communications semiconductor company. The sale will enable Intel to focus its investments on its core communications and embedded businesses, including Intel(R) Architecture and network processors, modular communications platforms and optical modules. The transaction closed Friday after completing regulatory review.
Cortina has purchased a broad selection of Intel's Ethernet Media Access Controllers (MACs) and Physical Layer Devices (PHYs) portfolio, and its entire portfolio Transport and Service Framers, Optical transport Forward Error Correction (FEC) framers, and T1/E1 line interface productsThe purchase expands Cortina's product portfolio to provide a more complete offering to current Cortina and Intel customers. Cortina plans to continue to work closely with Intel as an active member of the Intel(R) Communications Alliance.
Cortina also announced that, concurrent with the acquisition, it has closed a funding round led by a new investor, Institutional Venture Partners (IVP), along with other new investors Alloy Ventures, Bridgescale Partners, DCM - Doll Capital Management and Sofinnova Ventures. Existing Cortina investors Canaan Partners and Morgenthaler Ventures also led the round, and all other existing venture investors participated. As part of the transaction, and in addition to an undisclosed amount of cash, Intel received a minority equity position in Cortina. Additional financial terms are not being disclosed.
"This acquisition positions Cortina to become the leading pure-play communications semiconductor company," said Cortina CEO Amir Nayyerhabibi. "It greatly broadens our offering to give Cortina a comprehensive portfolio of products for network infrastructure applications while maintaining our reputation for leading-edge technology and outstanding customer service. The substantial customer overlap was a key driver for this acquisition, and customers support our decision to bring these products together under the Cortina brand."
"We're honing Intel's focus in the communications and embedded market segments to align with our core businesses," said Bill Chatwell, general manager of Intel's Optical-Networking Components Division. "The optical-networking components segment remains a strong market opportunity, and we believe this business and its assets are an optimal fit for Cortina as it grows the business while maintaining customer commitments."
Intel's optical-networking components business includes employees involved in a variety of functions, including engineering, operations and marketing. Cortina has extended offers of employment to a significant number of these employees. The two companies will be working together during the coming months to complete a smooth transition of the business in order to continue to offer high-quality service and support to customers.
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