[Via Satellite 02-04-2015] MaxLinear has agreed to purchase semi-conductor solutions manufacturer Entropic, with unanimous approval from both boards of directors. MaxLinear placed the implied total transaction value at approximately $287 million and the implied enterprise value is $181 million — the net of Entropic’s cash balance as of Dec. 31, 2014.
Entropic is known for its Multimedia over Coax Alliance (MoCA) home networking standard, along with creations such as its Direct Broadcast Satellite (DBS) outdoor unit single-wire technology. MaxLinear anticipates Entropic will bring immediate scale in its satellite Pay-TV market, which has been a strong growth area recently.
MaxLinear expects operating synergies of more than $20 million in the first full calendar year following the completion of the purchase. The acquisition is projected to close in the second quarter of 2015.
“We believe the scale and strategic benefits of a broader technology portfolio will enable us to accelerate our expansion into new markets more effectively. The financial benefits of the transaction should be immediately visible, as we expect non-GAAP earnings accretion in the first full quarter post-close,” said Kishore Seendripu, CEO of MaxLinear.