Cortina Systems, a start-up based in Sunnyvale, California, acquired the assets of Intel’s optical network components business for $115 million, which consists of a minority investment position and an undisclosed amount of cash. Cortina has been a leader in components for the IP routing and transport markets, while Intel has primarily focused TDM and optical components.
Cortina also announced the completion of a new $132 million funding round led by new investor Institutional Venture Partners (IVP) as well as existing investors Canaan Partners and Morgenthaler Ventures. Additional investors providing funding include new investors Alloy Ventures, Bridgescale Partners, Doll Capital Management, and Sofinnova Ventures, and along with all of Cortina’s existing venture investors. The transaction closed on September 8, 2006.
Cortina described the acquisition as a major step in its strategy of becoming the new leader in components for the infrastructure routing, transport, and enterprise markets, making it the top provider of Ethernet Framers, Ethernet PHYs, Optical Transport FEC framers, Ethernet over SONET service framers, and T1/E1 Line Interface Units.
As part of the acquisition, Cortina will add key Intel employees in engineering, product testing/validation, operations, marketing and application engineering as well as new facilities in Folsom, California, Raleigh, North Carolina, and Asia.
“We’re honing Intel’s focus in the communications and embedded market segments to align with our core businesses,” said Bill Chatwell, general manager of Intel’s Optical-Networking Components Division. “The optical-networking components segment remains a strong market opportunity, and we believe this business and its assets are an optimal fit for Cortina as it grows the business while maintaining customer commitments.”http://www.cortina-systems.comhttp://www.intel.com
- Cortina Systems is headed by Amir Nayyerhabibi, who previously held executive and engineering management positions in private and public companies such as Cisco Systems, StratumOne Communications, Silicon Graphics, Inc., MIPS Computer Systems, and Intel Corporation. Mr. Nayyerhabibi was co-founder and Vice President of Engineering at StratumOne Communications, which was acquired by Cisco in 1999. He also managed the development of 12416 and 12410 Cisco GSR Router programs.
