Intel flogs rackmount server biz to Kontron

If all goes according to plan at the regulatory review level, the two firms should sign on the dotted line within days, for an as-yet-undisclosed sum.

Kontron certainly has high hopes for the unit, and said it expects sales next year to surpass US$40 million.

The 70-employee rackmount server group will also go some way to helping Kontron extend its embedded computing and telecommunications activity.

The firm claims it is working closely with Intel to ensure the transition is “smooth and seamless”.

Ulrich Gehrmann, Kontron’s CEO said customers would benefit from being able to choose new computing platforms from a single source. He added, "Both the existing Intel products and any future Intel Architecture multi-core server designs will firmly establish Kontron the leading provider of multi-core carrier-grade server platforms."

Kontron will produce the servers at its factory in Penang, Malaysia.

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