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Intel Dumps Dialogic

Another piece of Intel goes, as relatively tiny Eicon scoops up the former Dialogic

Craig Matsumoto

August 9, 2006

2 Min Read
Intel Dumps Dialogic

The sell-off of Intel Corp. (Nasdaq: INTC) businesses continued today, as the company sold the former Dialogic to Eicon Networks Corp.

The deal is expected to close in four to six weeks. Terms were not disclosed, signifying that Dialogic wasn't a big chunk of Intel's business.

Montreal-based Eicon purchased the "media and signaling" business, as Intel calls it, which consists mainly of the Dialogic acquisition of 1999. That includes products aimed at traditional telephony: PBXs, SS7 signaling, and the like, as well as multimedia boards. Eicon is also acquiring Intel's host media processing software and related blades. (See Eicon Buys Intel Unit.)

An Intel release noted the sale does not include Intel's AdvancedTCA (ATCA) blades, CompactPCI equipment, or carrier-grade rackmount servers.

In April, Intel CEO Paul Otellini announced a soul-searching mission in which Intel would review every one of its businesses, possibly selling off some of them. Intel's communications efforts were a possibility for some cuts, as the company had poured money into network processors, optical networking, and telephony during the bubble years. (See Will Intel Trash Telecom?)

A first step came with the $600 million sale of cellphone and smart-handset chips to Marvell Technology Group Ltd. (Nasdaq: MRVL). (See Marvell Takes a Bit of Intel.)

As for other Intel networking assets that could be on the block, a press release hints that they aren't in danger. It notes that today's sale leaves Intel to focus on core businesses "including Intel Architecture and network processors, modular communications platforms, and optical modules."

Even so, Intel's restructuring isn't done. "There are still additional actions expected," with executives saying they might reveal more in the third quarter, an Intel spokeswoman says.

Privately held Eicon, founded in 1984, sells telephony servers and VPN gateways. With the acquisition, the company is also getting some funding from Investcorp and Tennenbaum Capital Partners .

Eicon has 212 employees compared with the 600 affected on Intel's side. Eicon plans to make offers to "a significant portion" of those, says Nick Jensen, Eicon president and CEO.

— Craig Matsumoto, Senior Editor, Light Reading

About the Author(s)

Craig Matsumoto

Editor-in-Chief, Light Reading

Yes, THAT Craig Matsumoto – who used to be at Light Reading from 2002 until 2013 and then went away and did other stuff and now HE'S BACK! As Editor-in-Chief. Go Craig!!

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