AUGUST 25, 2009 -- Ikanos Communications Inc. (search Lightwave for Ikanos) has completed the acquisition of the Broadband Access product line from Conexant Systems Inc. (search Lightwave for Conexant).
Ikanos announced its intention to acquire the product line this past April. The Conexant devices include its Xenon PON chips, as well as ADSL and home gateway chips.
"With the completion of this acquisition, Ikanos gains greater scale, an expanded product line, deeper technical expertise, and a broader global customer base," said Michael Gulett, president and CEO of Ikanos. "All of these elements will help us accelerate the delivery of our strategic vision developing new offerings that extend multi-play services to and throughout the digital home."
Under the terms of the agreement, Ikanos purchased Conexant's Broadband Access product line for approximately $54 million in cash, excluding transaction costs, and the assumption of certain employee and facility related liabilities. Simultaneously, Ikanos received an investment of $42 million, excluding transaction-related expenses, from Tallwood Venture Capital.
In addition, in accordance with the terms of the investment by Tallwood, George Pavlov, general partner of Tallwood Venture Capital, and Dado Banatao, managing partner and founder of Tallwood Venture Capital, have joined Ikanos's board of directors. Pavlov and Banatao will replace Gopal Venkatesh and Elizabeth Fetter, who are stepping down from their seats on the board.
Craig Garen, former senior vice president and general manager of Conexant's Broadband Access, has joined the company as chief operating officer.
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