MaxLinear Inc., a provider of set-top box circuitry to the pay-TV market, has acquired Entropic Communications, a maker of semiconductor solutions for the connected home.
The all-stock deal is valued at $287 million, with Entropic shareholders receiving $1.20 per share in cash and 0.2200 shares of MaxLinear common stock for each Entropic common share outstanding. The transaction is expected to close in the second quarter.
Headquartered in San Diego, just down the road from MaxLinear's Carlsbad, Calif., offices, Entropic is know for developing MoCA (Multimedia over Coax Alliance) home networking solutions, as well as a range of other technologies.
"We are very excited about the opportunity to bring together two talented and largely complementary teams, as we increase our capabilities to solve the most difficult analog and mixed-signal RF challenges in Broadband markets," said Dr. Kishore Seendripu, CEO of MaxLinear. "We believe the scale and strategic benefits of a broader technology portfolio will enable us to accelerate our expansion into new markets more effectively. The financial benefits of the transaction should be immediately visible, as we expect non-GAAP earnings accretion in the first full quarter post-close."
MaxLinear is set to deliver its fourth quarter earnings report on Feb. 9.
For more:
- read this MaxLinear press release
Related links:
Silicon maker MaxLinear takes hit as DOCSIS 3.0 modem deployment slows
Steve Craddock joins MaxLinear's board of directors
MaxLinear chosen by Chinese STB makers for triple-play box