Eicon to buy Intel's media and signaling business

SANTA CLARA, California: Eicon Networks Corporation and Intel Corporation today announced that they have signed an agreement for Intel to sell the assets of its media and signaling business to Eicon.

The acquisition is expected to allow Eicon to become a leading player in the media processing and signaling market segment.

The sale will enable Intel to focus its investments on its core communications and embedded businesses, including Intel Architecture and network processors, modular communications platforms and optical modules

The transaction is expected to close in approximately four to six weeks and is subject to regulatory review and normal closing conditions. Financial terms are not being disclosed.

Intel’s media and signaling business 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.

With Eicon’s complementary Diva Server line of products, it is anticipated that the acquisition will enable Eicon to provide enhanced enterprise and service provider offerings to current Eicon and Intel customers as well as future customers. Eicon plans to continue to work closely with Intel as an active member of the Intel Communication Alliance.

Eicon also announced that concurrently with the acquisition, leading global investment groups Investcorp Technology Ventures and Tennenbaum Capital Partners will invest in Eicon, with Investcorp serving as the lead equity investor in the transaction and Tennenbaum providing a credit facility and serving as an equity co-investor.

Nick Jensen, Eicon Networks’ president and CEO, said, “Eicon’s and Intel’s media and signaling products complement each other well. 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.

“We are also very pleased that the prestigious investment firms of Investcorp and Tennenbaum believe so strongly in the potential of the company following the acquisition that they have chosen to become shareholders in Eicon,” Jensen added.

“Our investment in the combination of Eicon and the Intel assets reflects our confidence in the tremendous potential of the media and signaling space,” said Savio Tung, head of Investcorp Technology Ventures. “Equally important, we have a great deal of experience executing complex spin-out transactions to help ensure a smooth transition with Eicon.”

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