Maxliner announces acquisition of Intel's Home Gateway Platform division

Latest update time：2021-08-31 21:50

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MaxLinear and its wholly owned subsidiaries, focused on the development of analog and mixed-signal integrated circuits for the connected home, wired and wireless infrastructure, and industrial and multi-application markets, announced that they have entered into a definitive agreement with Intel Corporation pursuant to which MaxLinear will acquire the assets of Intel's Home Gateway Platform Division in an all-cash transaction valued at $150 million, subject to customary closing conditions.

The Home Gateway Platform segment includes Wi-Fi access point, Ethernet and home gateway SoC products deployed in the carrier and retail markets.

MaxLinear said the acquisition will complement the company's existing product portfolio, provide customers in target end markets with a complete and scalable platform of connectivity and access solutions, and create potential new revenue opportunities in adjacent target end markets. MaxLinear expects to initially increase quarterly revenue by approximately $60 million to $70 million, and the acquisition is expected to increase MaxLinear's non-GAAP revenue in the first full quarter after the transaction closes.

"MaxLinear is excited about the strong growth potential and the ability to enhance the value proposition to existing customers with the addition of Intel's Home Gateway Platforms Division, including its Wi-Fi Access Point assets, Ethernet and Home Gateway SoC products," said Dr. Kishore Seendripu, Chairman and CEO of MaxLinear.

"These assets significantly expand our entire business while enabling us to deliver compelling WiFi products and significant growth opportunities both inside and outside the connected home, including expanding our portfolio to include IoT solutions. We are excited to welcome a world-class engineering team with best-in-class technical capabilities who will significantly expand MaxLinear's significant analog/RF mixed-signal portfolio through large-scale SoC product capabilities, software expertise, and more," Kishore Seendripu further noted.

"Intel and MaxLinear have a strong track record of collaboration in delivering gateway platforms for the home, and I believe this will be a seamless transition for our mutual customers and employees," Intel said. "It will also allow Intel's Client Computing Division to focus on our vision of delivering PC platforms that make the greatest contribution to everyone, without impacting Intel's Internet of Things Division or Intel's Network Platform Division." They emphasized.

The sale of Intel's home gateway assets represents a further consolidation of its connectivity solutions business under Chief Executive Officer Bob Swan, which was not part of the company's core business. Swan oversaw the sale of most of the company's smartphone modem business to Apple last year, six months into his tenure as CEO, a business he said "did not provide a compelling return."

An Intel spokesperson noted that the sale represents "most, but not all, of Intel's Home Gateway Platforms Group assets." The spokesperson added that the company expects to "find positions for most of the Home Gateway Platforms Group employees either through acquisition or internally."

However, Intel continues to focus on connectivity in other ways, including with its Wi-Fi 6 technology being integrated into chipsets for new client processor lines like Comet Lake H. The company is also investing in technology solutions for 5G network infrastructure.

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