Cortina Systems Acquires Intel's Optical Network Components Business

Strategic Insights -

Cortina Systems, a Sunnyvale-based company specializing in advanced communications ICs, has made a significant acquisition in the networking space. Cortina has acquired Intel's optical network components business for $115 million, expanding its product portfolio and customer base. The company also completed a new funding round led by Institutional Venture Partners (IVP) and existing investors, securing an additional $132 million in funding. This strategic move positions Cortina as a leader in the components for infrastructure routing, transport, and enterprise markets.

Key Takeaways:

  • Cortina acquired Intel's optical network components business for $115 million, solidifying its position in the networking space.
  • The acquisition brings together a broad range of solutions for IP, optical, TDM, and enterprise applications, expanding Cortina's product line and customer base.
  • Cortina completed a new funding round led by IVP, securing an additional $132 million in funding, with new investors including Alloy Ventures, Bridgescale Partners, and Doll Capital Management.
  • The acquisition adds key Intel employees, new facilities in Folsom, California, Raleigh, North Carolina, and Asia, strengthening Cortina's infrastructure and technical capabilities.
  • Cortina's CEO, Amir Nayyerhabibi, emphasized the strategic importance of the acquisition, stating that Cortina has become a leader in advanced communications semiconductors and is poised for further growth.
  • Cortina has established a strong reputation for superior quality and customer support, and the acquisition is expected to expand its position in the market.

Statistics:

  • $115 million: Amount acquired by Cortina from Intel's optical network components business.
  • $132 million: Additional funding secured by Cortina through a new funding round led by IVP.
  • 2001: Year in which Cortina Systems was founded.
  • 2006: Year in which the acquisition was announced.
  • Timeline: The transaction closed on September 8, 2006.
  • Key employees: Intel employees added to Cortina's engineering, product testing/validation, operations, marketing, and application engineering teams.

Sources:

  • Cortina Systems announcement: Cortina Systems announces acquisition of Intel's optical network components business for $115 million.
  • Institutional Venture Partners (IVP) quote: Norm Fogelsong, General Partner at IVP, stating that Cortina has the attributes they look for in a semiconductor investment.
  • Canaan Partners quote: Eric Young, co-founder and General Partner at Canaan Partners, stating that Cortina has been smart about acquiring complementary technologies.
  • Morgenthaler Ventures quote: Drew Lanza, General Partner at Morgenthaler Ventures, stating that Cortina's success in marrying high-speed network interfaces, low-layer processing, and high-speed interfaces on a single chip has made it one of the stars of their portfolio.