The deal is part of Intel’s broader restructuring to focus on its core businesses. The chipmaker recently announced that it would cut another 10,000 jobs by mid-2007, as part of its operational overhaul, which it hopes will help it better compete against rivals.
We’re honing Intel’s focus in the communications and embedded market segments to align with our core businesses, said Bill Chatwell, GM of Intel’s optical-networking components division, in a statement.
Cortina has purchased a range of Intel’s Ethernet media access controllers and physical layer devices portfolio, as well as its entire portfolio of transport and service framers, optical transport forward error correction framers and T1/E1 line interface products.
In addition to an undisclosed amount of cash, Intel received a minority equity position in Cortina.
Cortina also announced it had closed an undisclosed round of venture capital funding, from new investors Alloy Ventures, Bridgescale Partners, Doll Capital Management and Sofinnova Ventures. Existing investors Canaan Partners and Morgenthaler Ventures also participated.
