Intel sells home gateway business to Maxlinear for USD 150 mln cash

Nieuws Algemeen Wereld 6 APR 2020
Intel sells home gateway business to Maxlinear for USD 150 mln cash
MaxLinear has agreed to buy Intel’s connected home unit for USD 150 million in cash. The Home Gateway Platform division includes chips for Wi-Fi access points and Ethernet and home gateway products. MaxLinear said the acquisition will complement its existing portfolio, bringing together a complete and scalable platform of connectivity and access service products for existing customers, and creating potential new revenue opportunities in adjacent target end-markets. 

MaxLinear expects the deal to initially add USD 60-70 million to quarterly revenues and to add to adjusted profit in the first full quarter after completion. The deal is expected to close in the third quarter, not subject to any financing contingencies. 

MaxLinear also gave a new guidance for the first quarter, taking into account the impact of the coronavirus impact. The company now sees revenues for the quarter at USD 61.75-62.25 million, down from its original forecast of USD 65-70 million.

The sale marks Intel's exit from another line of business, after last year selling its smartphone modem activities to Apple. The company has refocused on its core business of processors for computers and servers, as well as targeting growth opportunities in the 5G network equipment segment. 

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Algemeen

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Intel,  MaxLinear

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Wereld

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Enterprise equipment, Semiconductors, Consumer devices, Wholesale, Corporate strategy, M&A buyouts & divestments

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