Amplifying its Multimedia over Coax Alliance (MoCA) technology business, MaxLinear put up $5 million in cash to acquire the legacy MoCA business of Toronto-based ViXS Systems.
MaxLinear was already a strong player in the MoCA market thanks in large part to its 2015 acquisition of Entropic Communications. Broadcom is one of its main rivals in the MoCA market.
MoCA is a high-speed IP technology for coax networks used in whole-home DVRs and for other home networking products. Last year, MaxLinear introduced its first line of chips based on MoCA 2.5, a version that supports speeds up to 2.5 Gbps.
Under the two-pronged deal announced Wednesday, ViXS will transfer all production of its XConnex MoCA products to MaxLinear, and ViXS will also provide a non-exclusive patent license, limited to the manufacturing and implementation of the XConnex MoCA business line and MaxLinear's MoCA products.
The latter part of the agreement is key because, prior to this week’s deal, ViXS had granted Entropic a limited license as part of a settlement announced in 2014 that stemmed from patent-related lawsuits involving ViXS and Entropic. The license resulting from the settlement transferred to MaxLinear when it purchased Entropic.
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ViXS said the transaction represents its exit the MoCA market, and includes the recent closing of its Austin, Texas, office that was primarily focused on MoCA and networking chips. ViXS, which entered the MoCA market in 2009, reasoned that it was unable to achieve the cost, economies of scale an margin synergies of its larger competitors in the MoCA market, which included MaxLinear, Broadcom and STMicro.
The sale, it added, will also enable ViXS to focus on its core video business, which includes Ultra HD and High Dynamic Range products.
"This transaction allows ViXS to exit the legacy MoCA market and to license our IP. It also provides additional financial resources needed to support our core video business and to achieve profitable growth," Sohail Khan, president and CEO of ViXS, said in a statement.