In a bid to develop its edge computing business, Intel has purchased Smart Edge computing platform, a subsidiary of Toronto-based Pivot Technology Solutions for $27 million.
An industry-leading information technology services and solutions provider, Pivot’s Smart Edge technology will further expand Intel’s 5G market, where IoT and edge computing has been forecasted to boom.
In a press release, Intel said that it’s expecting the 5G silicon addressable market to reach $65 billion by 2023.
“This transaction enhances our ability to address the 5G network transformation with a leading position in edge computing. We plan to take full advantage of our combined technologies and teams to accelerate the development of the edge computing market while creating a compelling solution for customers,” wrote Dan Rodriguez, the company’s vice president in the Data Center group.
Smart Edge, a software that helps split up data and store it closer to users to make computing devices respond faster, is designed to run on Intel’s chips. Eventually, the company aims to sell into equipment for 5G, the next generation of wireless data networks. It views 5G as a chance to expand sales beyond just personal computers and data centers.
The Smart Edge platform is also built to operate on Intel Xeon Scalable processors and is compatible with its OpenNESS project. As part of the acquisition, both companies will sign a Preferred Partner Agreement, which distinguishes Pivot as an authorized Smart Edge reseller and Intel’s non-exclusive Preferred Systems Integrator for Smart Edge-based edge services solutions.
Following the news, Intel’s shares rose nearly 1% to $52.15, while Pivot’s stock gained 4.9% to $0.70.
"I would like to take this opportunity to thank the dedicated Smart Edge software business employees that developed an industry-leading innovation and wish them much success as they join Intel's Network and Custom Logic Group," said Pivot CEO, Kevin Shank. "We at Pivot are very excited to be an Intel preferred channel partner for Smart Edge-based solutions and we look forward to leveraging our core strengths as a technology integrator and service provider to help drive its adoption."
Consequently, about 25 Smart Edge employees will join Intel’s Network and Custom Logic Group (NCLG) when the acquisition is finalized.