Qualcomm’s Atheros subsidiary on Thursday agreed to acquire fixed-line chip maker Ikanos, extending the company’s reach into the carrier broadband market.
Under the terms of the deal, Qualcomm will launch a US$2.75 per share tender offer for all of Ikanos’ issued and outstanding stock, which puts the deal’s value at $46.97 million.
The acquisition extends Qualcomm’s reach into the home gateway market by equipping it with a portfolio of broadband access and modem solutions that work with a broad array of fixed-line technologies. These include VDSL2 ad G.fast chipsets for customer premises equipment (CPE) and central office infrastructure, among others.
"Qualcomm Atheros has always viewed the home gateway as the enabler for consumers to not only access the Internet for browsing and downloading content and video streaming, but also as the hub of the Internet in the home for a variety of reliable and high quality services," said Rahul Patel, senior vice president and general manager, connectivity, Qualcomm Technologies, in a statement.
"The combination of Qualcomm Atheros’ broad home gateway IP portfolio , including WiFi, powerline, small cell, and Ethernet switch technologies, and Ikanos’ advanced wired modem technology, is designed to create a complete solution for a wide range of home gateway products to better serve the carrier segment," he said.
Ikanos’ board of directors has unanimously approved Qualcomm Atheros’ offer and recommended it to shareholders.
"Qualcomm Atheros and Ikanos have a long history of collaboration in the carrier space and share a common vision for the connected home. Bringing the two companies together enables Qualcomm Atheros to accelerate implementation of its strategy for the connected home, and to move the home gateway forward as a key enabler for new carrier applications and services," said Ikanos CEO Omid Tahernia.
The transaction is expected to close before the end of the year, at which point Qualcomm Atheros will take on Ikanos’ debt.
