Terms of the deal were not disclosed. Both companies are based in San Diego and are privately held.
"This merger brings together two independently successful companies in one of the fastest-growing segments of the semiconductor market,” Entropic CEO Patrick Henry said in a statement.
RF Magic CEO Mark Foley is expected to become Entropic’s president and chief operating officer once the deal closes.
Entropic’s investors include Cisco Systems, Comcast Interactive Capital, Cox Communications, EchoStar Communications, Intel Capital, Liberty Associated Partners, Motorola, Panasonic and Time Warner.
Entropic is a founding member of the Multimedia over Coax Alliance, an effort to develop standards for networking devices inside a home using existing coaxial cabling.