MaxLinear Completes Acquisition of and Raises Revenue Expectations from Intel’s Home Gateway Platform Division
- Expands MaxLinear’ Connectivity offering with additional TAM of $6.4 billion
- Increases revenue expectations from the acquisition to $80 million to $90 million in the first full quarter post close versus earlier guidance of $60 million to $70 million
MaxLinear, Inc., a leading provider of radio frequency (RF), analog and mixed-signal integrated circuits for the connected home, wired and wireless infrastructure, and industrial and multimarket applications, announced that it has completed the acquisition of Intel’s Home Gateway Platform Division, announced on April 6, 2020, in an all cash, asset transaction valued at $150 million. MaxLinear funded the acquisition with proceeds from a $175 million term loan A facility, which was upsized from $140 million initially announced.
The acquisition enables MaxLinear to strengthen its existing connected home portfolio by bringing together a complete, scalable, complementary platform of connectivity and access solutions to address its customers’ needs across target end-markets. As an update to the original expectation, based on the improving strength in the business, MaxLinear now expects to initially add approximately $80 million to $90 million in quarterly revenue from the acquisition, in the first full quarter post close. The acquisition is expected to be accretive to MaxLinear’s non-GAAP earnings.
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“First and foremost, we are excited to welcome a world-class engineering team which complements MaxLinear’s significant analog/RF mixed-signal capabilities with large scale SoC product, software, and comprehensive networking and signal-processing competencies spanning all our target markets. With the acquisition now complete, and the addition of WiFi, Ethernet, and Broadband Gateway Processor SoC technology assets to our portfolio, we will execute rapidly to expand our value proposition to our existing customers. These assets will not only drive scale, but also create tremendous new growth opportunities in broadband access, connectivity, power, and infrastructure markets,” said Kishore Seendripu, CEO of MaxLinear. “We are also encouraged by the strength in the broadband access business driven by the transformative work-from-home market dynamics, as well as the early adoption of the WiFi product.”
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