Oct. 6 (Bloomberg) -- Kontron AG, a German maker of miniature computers, is buying Intel Corp.'s communication rackmount server operation for an undisclosed sum.

Kontron expects 2009 sales from the unit to be more than $40 million, the Eching-based company said in an e-mailed statement today.

The acquisition will extend Kontron's telecommunications and embedded computing activities, it said, adding there will be synergies in the production of the servers made at its factory in Penang, Malaysia.

The deal is scheduled to close early this month, subject to regulatory review, Kontron said.

To contact the reporter on this story: Frances Robinson in Frankfurt at frobinson6@bloomberg.net

Last Updated: October 6, 2008 02:13 EDT