MaxLinear, a provider of radio frequency (RF), analogue and mixed-signal integrated circuits has announced that MaxLinear and its wholly owned subsidiary have entered into a definitive agreement with Intel Corporation under which MaxLinear would, subject to customary closing conditions, acquire Intel’s Home Gateway Platform Division assets in an all-cash, asset transaction valued at $150 million. The Home Gateway Platform Division comprises Wi-Fi Access Points, Ethernet and Home Gateway SoC products deployed across operator and retail markets.
MaxLinear says the acquisition will enable it to “complement its existing portfolio, bringing together a complete and scalable platform of connectivity and access solutions for its customers across target end-markets, as well as creating potential new revenue opportunities in adjacent target end-markets”.
MaxLinear expects initially to add approximately $60 million to $70 million in quarterly revenue, and the acquisition is expected to be accretive to MaxLinear’s non-GAAP earnings, in the first full quarter post close.
The transaction is expected to close in the third quarter of 2020, subject to customary closing conditions, including regulatory approvals.
“MaxLinear is excited by the strong potential for growth and the ability to enhance our value proposition to our existing customers with the addition of the Intel Home Gateway Platform Division, which includes its Wi-Fi Access Point assets, Ethernet, and Home Gateway SoC products,” said Kishore Seendripu, Ph.D., Chairman and CEO of MaxLinear. “These assets add significant scale to our entire business while enabling us to provide a compelling WiFi product offering with tremendous growth opportunities inside and outside of the Connected Home, including expanding the portfolio to include IoT solutions. We are excited to welcome a world class engineering team with best in class technology competency that will greatly expand MaxLinear’s significant analogue/RF mixed-signal portfolio with large scale SoC product capabilities, software expertise, and comprehensive networking competencies spanning our target markets.”
“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,” added Weng Kuan Tan, general manager of the Home Gateway Platform Division and corporate Vice President of the Client Computing Group at Intel. “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.”