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MaxLinear agrees to buy Intel’s home gateway platform
Posted on Tuesday, 07 April 2020 07:09
MaxLinear has reached an agreement to acquire Intel’s home gateway platform division in an all-cash asset transaction worth USD 150.00 million.
The division includes Wi-Fi access points, ethernet and system-on-a-chip (SoC) products deployed across operator and retail markets.
MaxLinear is billed as a leading provider of radio frequency, analogue and mixed-signal integrated circuits for the connected home, wired and wireless infrastructure and industrial and multimarket applications.
The purchase of Intel’s home gateway business will enable the acquiror to complement its existing portfolio, bringing together a complete and scalable platform of connectivity and access solutions for its customers.
In addition, it creates new revenue opportunities in adjacent target end-markets.
MaxLinear is initially expecting between USD 60.00 million and USD 70.00 million in quarterly revenue and the acquisition will boost non-generally accepted accounting principal earnings in the first full quarter following completion.
Closing is scheduled for the third quarter of 2020, subject to the usual raft of conditions, including regulatory approvals.
The news comes two months after Bloomberg cited people familiar with the matter as saying Intel is in discussions to sell its connected home business to MaxLinear.
According to the sources at the time, there was no guarantee of an agreement being reached and the value of the deal could not be learned.
Weng Kuan Tan, general manager of Intel’s home gateway platform, said: “Intel and MaxLinear have a strong track record of collaboration to deliver gateway platforms for the home, and I’m confident this will be a seamless transition for our mutual customers and employees.
“It will also allow Intel’s Client Computing Group to focus on our vision of delivering PC platforms that power every person’s greatest contribution while having no impact on Intel’s Internet of Things group or Intel’s Network Platform Group.”
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