Analog/Mixed Signal

MaxLinear to Acquire Entropic for $287 Million

06 February 2015

RF and mixed-signal integrated circuit supplier MaxLinear Inc. has signed a definitive agreement to acquire Entropic Communications in a $287 million deal.

Headquartered in San Diego, Entropic provides semiconductors and software solutions used in televisions, set top boxes and cable and satellite equipment for HD broadcasts and streaming video entertainment into homes. Its products include system-on-a-chip solutions, demodulators and decoders among others.

Like MaxLinear, Entropic is a fabless semiconductor company. It pioneered the Multimedia over Coax Alliance (MoCA) home networking standard and invented direct broadcast satellite outdoor unit single-wire technology. It also developed the industry’s first set-top box SoC platform based on the ARM processor with advanced OpenGL graphics.

MaxLinear said the acquisition will broaden the company's presence in its existing markets. MaxLinear designs high performance radio frequency (RF) receiver products for various applications. They are used in cable TV set top boxes, cable modems, digital ready televisions and Blu-ray and DVD players.

Dr. Kishore Seendripu, CEO of MaxLinear, said the acquisition will help MaxLinear expand to new markets.

Dr. Ted Tewksbury, interim president and CEO of Entropic, said the acquisition will add “significant scale to MaxLinear’s analog/mixed-signal business and enhance the strategic value of MaxLinear’s products."

With the acquisition, MaxLinear anticipates it will achieve operating synergies in excess of $20 million in the first full calendar year, increase scale and increase profit margins.

The transaction is expected to close in the second quarter and is subject to approval by the shareholders of both companies and regulatory approvals.

Entropic shareholders will receive $1.20 per share in cash and 0.2200 shares of MaxLinear common stock for each Entropic common share outstanding.

Questions or comments on this story? Contact dylan.mcgrath@ihs.com

Related links:

www.maxlinear.com

IHS Semiconductors & Components'

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