Intel buys Smart Edge software from Canada's Pivot in 5G push

Computer chipmaker Intel Corp has agreed to purchase the Smart Edge software business from Toronto-based information technology firm Pivot Technology Solutions Inc, Intel said on Tuesday.

Intel said it has signed a definitive agreement to acquire the Smart Edge intelligent-edge platform business from Pivot Technology Solutions Inc, an IT infrastructure and service provider. 
Smart Edge is a software business that is designed to help split up data and store it closer to users to make computing devices respond faster.
With Smart Edge, enterprises and communications service providers can bring cloud-like services closer to the user on the customer-premise or network edge, Intel said. 
California-based Intel expects the expansion of computing in the network and at the edge to open an estimated $65 billion silicon addressable market by 2023, providing an important growth opportunity for Intel.
Edge computing will accelerate with the rollout of 5G networks, according to Intel.
Smart Edge is a cloud-native, scalable and secure platform for multi-access edge computing (MEC) and is designed to run on Intel’s chips.
The companies did not disclose financial terms of the deal.
Intel is looking to enter the equipment business for 5G, the next generation of wireless data networks that is being rolled out starting this year.
According to Pivot’s securities filings, Smart Edge did not generate significant revenue for Pivot in the first six months of 2019, but made a loss of about $1 million before depreciation and amortization. Pivot, which has a market value of about $43 million, was issued a US patent on Smart Edge’s technology in July.
Intel views 5G as a chance to expand its sales beyond personal computers and data centers, its two largest business segments.
Approximately 25 Smart Edge employees will join Intel’s Network and Custom Logic Group (NCLG) when the transaction closes, which is expected in the coming weeks.
Also, as a part of this acquisition, Intel and Pivot will sign a preferred partner agreement, which identifies Pivot as an authorised Smart Edge reseller and Intel’s non-exclusive preferred systems integrator for Smart Edge-based edge services solutions.
“Intel is the right company and brand to advance and scale Smart Edge’s software solution,” said Kevin Shank, CEO of Pivot. “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. We look forward to collaborating with Intel to develop and take to market many new edge computing use cases.”
“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.