Eicon Networks To Purchase Intel’s Media and Signaling
Business
SANTA CLARA, California, August 9, 2006 – Eicon
Networks Corporation (“Eicon”) 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.
“This is a very exciting day for Eicon,” said Nick Jensen,
Eicon Networks’ president and CEO. “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.”
“We are delighted to have the opportunity to invest in the combination
of Eicon and the Intel assets,” said Steven Chang, a Partner at
Tennenbaum. “We’re committed to providing management with
the financial resources and expertise they need to continue to provide
innovative products and services to customers and grow the business. This
investment underscores Tennenbaum’s continued commitment to investing
in technology companies and highlights our confidence in the media processing
and signaling market segments.”
“Intel is sharpening its focus on communications and embedded market
segments that are aligned with our core businesses,” said Anthony
Neal-Graves, general manager of Intel’s Modular Communications Platform
Division. “The media and signaling business continues to present
an attractive market opportunity, and these products will continue to
be an important part of the Intel ecosystem. We will continue to collaborate
with Eicon to ensure that customers have complete and competitive Intel
Architecture-based solutions.”
Intel’s media and signaling business includes approximately 600
employees involved in a variety of functions, including engineering, product
testing and validation, operations and marketing. It is expected that
a significant number of these employees will become employees of Eicon.
The two companies will be working together during the coming months to
seamlessly transition the business in order to continue to offer high
quality service and support to all customers.
This sale does not impact Intel’s communications infrastructure
products for telecommunications equipment manufacturers, including its
industry-leading Advanced Telecom Computing Architecture* (ATCA) blades
and carrier-grade rack mount servers, and its CompactPCI* compute blades
and chassis.
About Intel
Intel, the world leader in silicon innovation, develops technologies,
products and initiatives to continually advance how people work and
live. Additional information about Intel is available at www.intel.com/pressroom.
About Eicon Networks
Eicon Networks, founded in 1984, provides media processing hardware
and software that enable developers and system integrators to deliver
applications for voice, speech, conferencing, VoIP, fax and IP based
solutions. Eicon’s flagship Diva Server products share a powerful
common architecture along with a wide range of tools for developers
and market leading support. Further information is available at www.eicon.com.
About Investcorp Technology Ventures
Based in New York and London, Investcorp Technology Ventures
focuses on venture buyouts, corporate spinouts and growth capital financing
of established technology companies. Investcorp Technology Ventures
is part of Investcorp, a global investment group with offices in New
York, London and Bahrain. It was established in 1982 and has since completed
transactions with an aggregate value of approximately $30 billion. Investcorp
currently manages over $9.9 billion in private equity, venture capital,
real estate and other alternative investments. Further information is
available at www.investcorp.com.
About Tennenbaum Capital Partners
Tennenbaum Capital Partners is a Santa Monica, California-based
private investment firm managing over $4 billion in private funds. Tennenbaum
focuses on investment opportunities between $50 million to $250 million.
The firm's investment strategy is based on a long-term horizon and value-oriented
approach. Tennenbaum's core strengths include an in-depth knowledge
of equity and debt financing vehicles in the public and private markets
with a focus on complex investments such as acquisitions and special
situations. Tennenbaum has extensive investment experience in several
industries, including retail, manufacturing, energy and power as well
as technology and telecom. Recent investments in the technology sector
include Celerity, Inc., Enterasys Networks, Information Resources, Inc.,
Isola Group, Lawson Software, Online Resources Corporation and Vitesse
Semiconductor. For more information, please visit www.tennenbaumcapital.com.
CONTACTS: Barbara Grimes Nick Jensen
Intel Press Relations Eicon Networks CEO
503-712-6024 514-402-8066
barbara.t.grimes@intel.com nick.jensen@eicon.com
About Eicon Networks
Eicon Networks, founded in 1984, provides media processing hardware
and software that enable developers and system integrators to deliver
applications for voice, speech, conferencing, VoIP, fax and IP based
solutions. Eicon’s flagship Diva Server products share a powerful
common architecture along with a wide range of tools for developers
and market leading support.
Eicon, headquartered in Montreal with offices worldwide, distributes,
markets and supports its products through an extensive network of channel
partners, independent software vendors (ISVs), telecommunication companies
(telcos), service providers and original equipment manufacturers (OEMs).
Further information is available at www.eicon.com.
Eicon Diva, Diva Server and the Eicon logo are trademarks of Eicon Networks
Corporation or its subsidiaries. Intel is a registered trademark of Intel
Corporation or its subsidiaries in the United States and other countries.*Other
names and brands may be claimed as the property of others.
Contacts:
Leigh Ann Clavenna
Regional Marketing Manager, Americas
Eicon Networks
Tel: 972-473-4533
leigh.clavenna@eicon.com
About Copia
Founded in 1987, Copia International is an innovator
in the communications solutions software market. Daily, thousands
of customers worldwide use Copia's CopiaFacts software suite of
FaxFacts, VoiceFacts and E-MailFacts to send and receive information
by fax, voice, or e-mail.
Copia holds the patents for its one-call fax retrieval and mail
merge-to-fax technology and has offices in the United States and
United Kingdom. Copia's software supports both Intel/Dialogic and
Eicon Diva server products. www.copia.com
Contact: Dorothy Gaden-Flanagan, 630.388.6903
VP Marketing, dorothy@copia.com
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