Oct 15 (Reuters) - California chipmaker Intel Corp has agreed to purchase a software business from Toronto-based information technology firm Pivot Technology Solutions Inc , Intel said on Tuesday.
Intel said it would purchase Smart Edge, a software business that is designed to help split up data and store it closer to users to make computing devices respond faster. The companies did not disclose financial terms of the deal.
The software is designed to run on Intel's chips, which are best known as the heart of most personal computers but which the company is aiming to sell into equipment 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 U.S. 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.
In 5G networks, more data will be stored on computers scattered near cell towers and other network gear. Storing the data there, a practice called "edge computing" in the industry, is expected to help large files like videos show up more quickly on users' screens than if they were stored in centralized data centers.
"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. (Reporting by Stephen Nellis in San Francisco Editing by Kenneth Maxwell)