MaxLinear said it has completed its acquisition of Entropic Communications, a company that specializes in set-top chipsets and Multimedia over Coax Alliance (MoCA) silicon.
The deal, whose original implied value was $287 million when it was announced in February, has existing holders of MaxLinear capital stock with approximately 65% and former Entropic stockholders will hold approximately 35% of MaxLinear's outstanding capital stock.
In addition to broadening MaxLinear's presence in its existing markets, MaxLinear said the acquisition will also add scale and deepen customer relationships in areas such as the satellite pay TV market.
"We are very excited about the opportunity to bring together two talented and largely complementary teams, as we increase our capabilities to solve the most difficult analog and mixed-signal RF challenges in Broadband markets," said Dr. Kishore Seendripu, CEO of MaxLinear, in a statement.
MaxLinear also announced first quarter results Thursday, posting revenues of $35.4 million, up 9% year-over-year, citing demand across its cable and satellite platform solutions, more than offsetting expected seasonal softness in its terrestrial set-top box business. That was paired with a net loss of $4.7 million (12 cents per share), a number that included $2.5 million in fees and expenses tied to the Entropic acquisition, and $600,000 in severance costs related to eliminating engineering ops in Shanghai.
“We are particularly encouraged that the demand for our DOCSIS 3.0 data modem and gateway front end solutions, one of our primary cable growth drivers, experienced a strong shift towards higher-channel-count DOCSIS 3.0 modems and gateways,” the company noted.