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Kontron to Acquire Intel's Communication Rackmount Server Operation

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October 07, 2008

Kontron to Acquire Intel's Communication Rackmount Server Operation

By Richard Grigonis, Executive Editor, IP Communications Group

Kontron AG has long been a juggernaut in the embedded computer solutions and custom-engineer services business. Along the way, it has acquired quite a number of companies. For example, Teknor Applicom, founded in 1985, had more than 200 employees in its heyday at its headquarters in Boisbriand, Quebec, Canada. Teknor was a leading-edge designer and manufacturer of high-end industrial single board computers and systems aimed at major OEMs and systems integrators in the industrial equipment, telecom systems and medical devices market. Teknor was acquired by Kontron in July 1999.

Then there was Kontron’s acquisition of U.S.-based ICS Advent (formerly called Industrial Computer Source) in an all cash transaction in 2001. ICS Advent was one of the most recognized names in the embedded and industrial PC industry, and it gave Kontron a significant North American presence.
PEP Modular Computers of Pittsburgh, Pennsylvania, was founded in 1975 and designed and manufactured CompactPCI (News - Alert) and VMEbus single board computers, systems and software for rugged, real-time industrial and military use. PEP was the first 3U VMEbus developer to achieve ISO 9001 certification. The company had operations in the U.S., Germany, France, Great Britain, the Netherlands, Sweden, Korea and Poland. Acquired by the Kontron Group in September 2000, PEP was renamed Kontron Modular Computers GmbH in August 2002.
At this point Kontron was prominently positioned among the world’s top five embedded hardware vendors. Indeed, with the merger of the Kontron Embedded Computers AG and JUMPtec Industrielle Computertechnik AG, completed on August 14, 2002 under the new moniker Kontron AG, they probably became the world´s largest supplier of embedded computers.
And now, mighty Kontron has reached an agreement with Intel (News - Alert) Corporation to acquire its Communication Rackmount Server operation of 1U, 2U carrier-grade rackmount and IP network security server products. The transaction, subject to regulatory review and standard closing conditions, is expected to close shortly.
The 70-member Intel carrier-grade rackmount and network server team mainly centered in Columbia, South Carolina, and Penang, Malaysia, is 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.
This strategic acquisition by Kontron will give it even more expertise in world-class server technology, including high-density mechanical and electronic design, thermal and vibration analysis, and implementation of high availability. To help ensure a continuous supply of products and a high quality of support and services to Intel customers, both Intel and Kontron 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 multi-core server designs will firmly establish Kontron as the leading provider of multi-core 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.
The Intel line of carrier-grade servers provide a choice of Quad-Core Intel Xeon processors based on Intel's latest 45 nanometer (nm) technology for today’s best performance-per-watt processing. These 1U and 2U servers are NEBS-3 and ETSI (News - Alert)-compliant and are suitable for demanding central office environments and the limited space of highly available data centers. They support many applications that include: unified messaging, call control, media and signaling gateways, and operational system support.
The Intel family of IP network security servers, comprised of 1U and 2U devices, are suited for enterprise application acceleration and content caching, as well as for running Telco SoIP, such as IMS, IPTV, Video on Demand (VoD), SIP application servers, IP-PBX (News - Alert), and IP-PSTN gateways.
Kontron continues to cement its position as a world-class player of embedded and carrier-grade computing platforms.

Richard Grigonis is Executive Editor of TMC (News - Alert)�s IP Communications Group. To read more of Richard�s articles, please visit his columnist page.

Edited by Michelle Robart

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