Qualcomm Atheros, a subsidiary of Qualcomm Incorporated has entered into a merger agreement to acquire Ikanos Communications.
The move is part of a plan to supplement Qualcomm Atheros’ footprint in the carrier fixed line segment with the addition of broadband access and modem technologies.
“The combination of Qualcomm Atheros’ broad home gateway IP portfolio, including Wi-Fi, 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,” said Qualcomm Technologies, Inc. senior vice president and general manager of connectivity Rahul Patel.
Under the agreement, Qualcomm Atheros will pay $2.75 per share in cash to acquire all of the issues and outstanding shares of common stock from Ikanos, and will also take on all of the company’s outstanding debt.
Ikanos’ board of directors has unanimously approved the transaction and has recommended the offer to the company’s stockholders. The transaction is expected to close by the end of this year, subject to closing conditions and regulatory clearances.
“Qualcomm Atheros and Ikanos have a long history of collaboration in the carrier space and share a common vision for the connected home,” said Ikanos president and chief executive officer Omid Tahernia. “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.”
The acquisition of Ikanos will give Qualcomm Atheros access to A/VDSL2 and G.fast modem technology, chipsets for consumer premises equipment (CPE) and central office (CO) infrastructure and Ikanos’ inSIGHT software, which allows remote diagnosis, management and optimization of the broadband connection and quality-of-service, and voice over IP (VoIP) integrated access devices and bridges. Ikanos also offers multi-mode gateway processor and accelerator technology for fiber, LTE, Ethernet and hybrid-copper applications.
Shares of Qualcomm Incorporated remained flat in early trading Thursday at $63.71.
