MaxLinear to acquire Home Gateway Platform Division of Intel
The acquisition will enable MaxLinear to complement its existing portfolio
MaxLinear, Inc., a prominent provider of radio frequency (RF), analog and mixed-signal integrated circuits for the connected homes, wired and wireless infrastructure, and industrial applications. MaxLinear, Inc. announced on 6th April 2020, that its wholly-owned subsidiary has entered into a final agreement with Intel Corporation, following which MaxLinear would acquire Intel’s Home Gateway Platform Division assets in an all-cash, asset transaction valued at USD 150 million. The Home Gateway Platform Division comprises WiFi Access Points, Ethernet, and Home Gateway SoC products used across operator and retail businesses.
The acquisition will allow MaxLinear to complement its present portfolio, bringing together full and scalable platforms of connectivity and access solutions for its clients across target end-markets, as well as creating inherent new revenue opportunities in the next target end-markets. MaxLinear initially expects to add approximately USD 60 million to USD 70 million in quarterly revenue, and the deal is expected to be helpful to MaxLinear’s non-GAAP earnings in the first full quarter post-close.
According to Kishore Seendripu, Ph.D., Chairman, and CEO of MaxLinear, MaxLinear is excited by the powerful potential for growth and the ability to improve our value proposition to our existing clients with the extension of the Intel Home Gateway Platform Division, which includes its Ethernet, WiFi Access Point assets, and Home Gateway SoC products.
These assets add an important scale to the entire company while empowering MaxLinearto to provide a compelling WiFi product contribution with huge growth opportunities inside and outside of the Connected Home, including expanding the company portfolio to include IoT solutions. MaxLinear is excited to welcome a world-class engineering team with the best in quality technology competency that will considerably expand MaxLinear’s significant analog/RF mixed-signal portfolio with software expertise, large scale SoC product capabilities, and extensive networking competencies spanning our target businesses.
According to Weng Kuan Tan, the general manager of Home Gateway Platform Division and Corporate Vice President of the Client Computing Group at Intel, Intel and MaxLinear have a great track record of collaboration to address gateway platforms for the home, and Intel is confident this will be a seamless transition for mutual customers and employees. It will also allow Intel’s Customer Computing Group to focus on the vision of delivering PC platforms that power every person’s greatest contribution while having no impact on Intel’s Network Platform Group or Intel’s Internet of Things Group.