MaxLinear to buy Home Gateway Platform Division from Intel

April 7, 2020

The closing is subject to customary closing conditions, including regulatory approvals, but is not subject to financing contingencies, according to MaxLinear.

Stephen Hardy

MaxLinear Inc. (NYSE: MXL) says that it has agreed, in combination with an unidentified wholly owned subsidiary, to buy Intel’s Home Gateway Platform Division assets in an all-cash transaction valued at $150 million. The company expects the deal to close in the third quarter of this year. The closing is subject to customary closing conditions, including regulatory approvals, but is not subject to financing contingencies, according to MaxLinear.

The Home Gateway Platform Division includes Wi-Fi access points, Ethernet, and home gateway system-on-chip (SoC) devices used in end-customer operator and retail products. MaxLinear says the acquisition will enable it to more effectively offer a “complete and scalable platform of connectivity and access solutions” as well as open new revenue opportunities. The company expects the assets will initially add approximately $60 million to $70 million in quarterly revenue, with the acquisition accretive to MaxLinear’s non-GAAP earnings in the first full quarter after close.

“These assets add significant scale to our entire business while enabling us to provide a compelling WiFi product offering with tremendous growth opportunities inside and outside of the Connected Home, including expanding the portfolio to include IoT solutions,” said Kishore Seendripu, Ph.D., chairman and CEO of MaxLinear. “We are excited to welcome a world class engineering team with best-in-class technology competency that will greatly expand MaxLinear’s significant analog/RF mixed-signal portfolio with large-scale SoC product capabilities, software expertise, and comprehensive networking competencies spanning our target markets.”

“Intel and MaxLinear have a strong track record of collaboration to deliver gateway platforms for the home, and I’m confident this will be a seamless transition for our mutual customers and employees,” added Weng Kuan Tan, general manager of the Home Gateway Platform Division and corporate vice president of the Client Computing Group at Intel. “It will also allow Intel’s Client Computing Group to focus on our vision of delivering PC platforms that power every person’s greatest contribution while having no impact on Intel’s Internet of Things Group or Intel’s Network Platform Group.”

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About the Author

Stephen Hardy | Editorial Director and Associate Publisher, Lightwave

Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.

Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.

He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.

You can connect with Stephen on LinkedIn as well as Twitter.