Complementary Acquisition Significantly Expands and Diversifies Revenue and Product Mix, Accelerates Penetration in the Global Connected Home Entertainment Market
Entropic Communications, Inc., a world leader in semiconductor solutions for the connected home, today announced it has completed the acquisition of Trident Microsystems’ set-top box (STB) system-on-a-chip (SoC) business.
With the completion of this acquisition, Entropic gains greater scale, an expanded product line, deeper technical expertise, and a broader global customer base. The acquired assets include Trident’s complete STB product portfolio, comprised of a comprehensive suite of digital STB components and system solutions for the worldwide satellite, terrestrial, cable and IPTV markets. The STB offering includes STB SoCs, DOCSIS modems, interface devices and media processors. In addition, these products feature a range of ARM application processor-based SoCs that have been optimized for leading Web technologies, in addition to traditional Standard-Definition STBs and advanced High-Definition STBs.
“This transaction is a watershed event for Entropic and will have a major impact on the scope and scale of our business going forward,” said Patrick Henry, president and CEO of Entropic. “The acquisition expands our presence in the connected home entertainment market by providing us with complementary assets, intellectual property, patents, core competencies and products that address a much larger available market, while expanding our international presence and diversifying our revenue base. Our best-in-class MoCA solutions, including MoCA2, combined with Trident’s STB system-on-a-chip business creates the only pure-play company focused on connected home solutions for the world’s premier cable, telco and satellite service providers.”
Mark Samuel, former senior vice president and general manager of the Set-Top Box Business Unit of Trident Microsystems, joins Entropic as senior vice president, Set-Top Box Business Unit, reporting to Patrick Henry. Approximately 365 global employees will immediately become part of Entropic.
The transaction, originally announced on January 4, 2012, closed effective as of April 12, 2012. As a result of the acquisition, Entropic’s results for its second quarter of fiscal year 2012, which will end on June 30, 2012, will include approximately eleven weeks of Trident STB business activity. Entropic management will provide more detailed information about the combined company’s outlook during its next regularly scheduled earnings announcement scheduled for April 24, 2012. At that time, the Company will review its quarterly results and provide financial guidance for the second quarter of 2012, including the impact of the Trident STB SoC acquisition.