Sale of Smart Edge™ to IntelTORONTO, Oct. 15, 2019 /CNW/ - Pivot Technology Solutions, Inc. (TSX:PTG.TO - News), ("Pivot", or the "Company"), a full-service information technology provider, is pleased to announce that it has entered into a definitive agreement to sell its Smart EdgeTM software business to Intel Corporation (NASDAQ:INTC - News), ("Intel") for total consideration of $27 million USD, payable in cash. The transaction is scheduled to close during the fourth quarter of 2019 and is subject to customary closing conditions. Pivot's dedicated Smart Edge employees, including Smart Edge CEO Bob Pike, will join Intel's Network and Custom Logic Group (NCLG) when the transaction closes.
"This transaction enhances Intel's ability to address the 5G network transformation with a leading position in edge computing," said Dan Rodriguez, vice president and general manager of the Network Compute Division in Intel's Data Center Group. "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."
In connection with the sale of Smart Edge, Pivot and Intel have entered into a three-year preferred channel partner agreement which designates Pivot as a non-exclusive preferred system integrator and channel partner for Smart Edge based solutions. Under this agreement, Pivot will market Smart Edge solutions and provide customers edge services including: deployment, system integration, monitoring and support services.
"It's been exciting to develop and launch this cutting-edge platform and to witness the enthusiastic response from customers and partners," said Mr. Kevin Shank, CEO. "Pivot remains focused on the vast opportunities at the edge, and with our Intel partnership, we maintain our goal of becoming the #1 edge services provider in North America."
"Intel is the right company and brand to advance and scale Smart Edge's software solution. Our partnership with Intel will leverage Pivot's core strengths as a technology integrator and service provider with Intel's advanced technology solutions to drive the adoption of the Smart Edge platform," added Mr. Shank. We look forward to collaborating with Intel to develop and take to market many new edge computing use cases."
As a result of the sale, Intel will acquire all of the assets of Smart-Edge.com, an indirect subsidiary of the Company, related to the Smart Edge Business, and will assume certain specified liabilities.