Many of us knew that Cortina had acquired Intel’s optical business, because we were alerted to a briefing with Cortina, and news leaked out early last week.

There was no dollar figure, or other details. So now we have the skinny: Cortina, a Sunnyvale start-up, has acquired the assets of Intel’s optical network components business for $115 million, which “consists of a minority investment position and an undisclosed amount of cash.”

Cortina also announced the completion of a new $132 million funding round led by new investor Institutional Venture Partners (IVP) as well as existing investors Canaan Partners and Morgenthaler Ventures, the company said in a statement that is about to go on the news wires.

Additional investors include new investors Alloy Ventures, Bridgescale Partners, Doll Capital Management, and Sofinnova Ventures.

Norm Fogelsong, general partner at IVP, said the deal will create “the next major semiconductor supplier in the networking space.”

Cortina wants to be a leader in components for the infrastructure routing, transport, and enterprise markets — a provider of Ethernet Framers, Ethernet PHYs, Optical Transport FEC framers, Ethernet over SONET service framers, and T1/E1 Line Interface Units.

According to the release:

As part of the acquisition, Cortina will add key Intel employees in engineering, product testing/validation, operations, marketing and application engineering as well as new facilities in Folsom, California, Raleigh, North Carolina, and Asia.

“As the market for 10 gigabit communications becomes mainstream, makers of switches, routers, and other infrastructure gear need better and more cost-effective ways to deliver a higher level of throughput,” says Drew Lanza, general partner at Morgenthaler Ventures, one of Cortina’s founding investors in 2001. “At the time we invested, we predicted the need to marry high-speed network interfaces, low-layer processing and high speed interfaces on a single chip. Cortina’s success in achieving this has made it one of the stars of our portfolio.”

This is a huge change for Cortina, which last time we checked, had raised only a total of $85M million in two rounds of funding since 2001

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