(Associated Press via NewsEdge) Intel has sold a business that manufactures optical network components to Cortina Systems for $115 million in cash and stock, the companies announced.
The sale comes a week after Intel announced a major restructuring in which the semiconductor producer plans to cut 10,500 jobs, or about 10% of its work force, through layoffs, attrition and the sale of underperforming business units.
Intel declined to indicate whether the sold business is profitable. Cortina said the acquisition will make it 'immediately profitable' but declined to elaborate.
Cortina, based in Sunnyvale, California, also announced it has raised another $132 million in venture capital, a funding led by new investor Institutional Venture Partners and previous backers Canaan Partners and Morgenthaler Ventures.
Including the new funding, Cortina has now raised nearly $200 million in venture capital.
Negotiations for the optical components business began before Intel detailed its restructuring last week, but the sale of the 120-employee operation will contribute to the job cut target, a spokesman said.
Cortina has offered positions to a significant number of those employees, the companies said, declining to provide an exact number.
The sale of the components business will give Intel a minority stake in Cortina. The companies did not specify how large that stake would be, however, nor did they say how much cash was involved in the deal.
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