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Intel Sells Media and Signaling Unit to Eicon

Intel, going forward with its latest strategy to sell or shut down underperforming businesses, has agreed to sell the assets of its media and signaling business to Eicon Networks, a privately held company. The deal follows Intel’s money-losing communications chips business XScale sale to Marvel for USD 600 million.

The products included with the sale 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.

Both the companies have not disclosed the financial terms of the deal. The transaction is expected to close in about four to six weeks. Intel said it deal would affect about 600 employees, most of whom were expected to join the staff of Eicon.

Intel said the sale does not impact Intel's communications infrastructure products for telecommunications equipment manufacturers.

Intel had once considered telephone technology as a promising growth market and had gone ahead to buy computer telephony company Dialogic in 1999 for USD 780 million in cash.

Eicon said the purchase would more than triple its annual sales and that two investment groups, Tennenbaum Capital Partners and Investcorp, would invest in the company to help it absorb the business.

"We expect this acquisition to extend our global reach with solutions for both traditional circuit switch communication technology and leading-edge IP platforms for both enterprises and service providers," said Nick Jensen, Eicon Networks' president and CEO.


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