Intel Corp has agreed to purchase a software business from Pivot Technology Solutions.
Intel said it would complete the deal for Smart Edge, a software that helps divide data and store it closer to users to make computing devices respond faster as it gears up for the 5G revolution in the final quarter of this year.
The software is designed to run on Intel’s chips, which are best known as the key component of most personal computers, but which Intel is aiming to make part of the 5G revolution—the next generation of wireless data networks that is being rolled out starting this year.
Toronto-based Pivot Technology Solutions, which has a market value of about $43 million, was issued a US patent for Smart Edge’s technology in July, yet in the first six months of 2019 the company did not generate significant revenue, making a loss of about $1 million.
The 5G revolution
As part of 5G networks, data will be stored on computers located around cell towers and other network equipment. This practice of “edge computing” will enable large files, such as videos and other information, to be transferred more quickly than if they were stored in centralized data centers.
5G will expand mobile networks to support a vast diversity of devices and services and connect businesses with improved performance, efficiency, and cost. It is expected to redefine a broad range of industries with connected services from retail to education and transportation to entertainment.
Intel has said it views 5G as a chance to expand its sales beyond personal computers and data centers, its two largest business segments.
“We plan to take full advantage of our combined technologies and teams to accelerate the development of the edge computing market,” Dan Rodriguez, a general manager of the network compute division in Intel’s data center group, said in a statement.
Intel’s shares rose nearly 1% to $52.15 in morning trade Tuesday (October 15) upon news of the deal, while of Pivot Technology stock gained 4.9% to C$0.70.