Qualcomm Atheros agreed to acquire Ikanos Communications, a developer of broadband networking semiconductors and software for both central office and home gateways, for $2.75 per share in cash, and assume all outstanding indebtedness at the closing of the transaction. (implied value of approximately $47 million)
Ikanos provides a wide array of leading technologies, including A/VDSL2 and G.fast modem technology and chipsets for consumer premises equipment (CPE) and central office (CO) infrastructure. Ikanos also offers multi-mode gateway processor and accelerator technology for fiber, LTE, Ethernet and hybrid-copper applications. In addition, Ikanos inSIGHT software allows remote diagnosis, management and optimization of the broadband connection and quality-of-service, and voice over IP (VoIP) integrated access devices and bridges. Ikanos’ strong central office product portfolio, as well as its technology collaboration with Alcatel-Lucent in the area of fixed access communications, enables Qualcomm Atheros to offer a strong product portfolio in the ultra-broadband access space, including G.fast.
Qualcomm Atheros said the acquisition will expand its footprint in the carrier fixed line segment with the addition of high performance broadband access and modem technologies.
“Qualcomm Atheros has always viewed the home gateway as the enabler for consumers to not only access the Internet for browsing and downloading content and video streaming, but also as the hub of the Internet in the home for a variety of reliable and high quality services,” said Rahul Patel, senior vice president and general manager, connectivity, Qualcomm Technologies, Inc. “The combination of Qualcomm Atheros’ broad home gateway IP portfolio, including Wi-Fi, powerline, small cell, and Ethernet switch technologies, and Ikanos’ advanced wired modem technology, is designed to create a complete solution for a wide range of home gateway products to better serve the carrier segment.”
Separately, Ikanos reported revenue for the second quarter of 2015 of $11.1 million, compared to revenue of $11.3 million for the second quarter of 2014 and revenue of $10.2 million for the first quarter of 2015. Net loss for the second quarter of 2015 was $(12.3) million, or a loss of $(0.72) per share on 17.1 million weighted average shares outstanding, compared to a net loss of $(12.3) million, or $(1.24) per share on 9.9 million weighted average shares outstanding, for the second quarter of 2014 and a net loss of $(12.0) million, or $(0.77) per share on 15.6 million weighted shares outstanding, for the first quarter of 2015. Cash and cash equivalents at the end of the second quarter of 2015 were $16.0 million, compared to $13.0 million at the end of the first quarter of 2015. Additionally, at the end of the second quarter of 2015, inventory was $2.0 million, compared to $2.1 million at the end of the first quarter of 2015. Current liabilities at the end of the second quarter of 2015 were $20.6 million, compared to $18.1 million at the end of the first quarter of 2015.
https://www.qualcomm.com/news/releases/2015/08/06/qualcomm-acquire-xdsl-and-gfast-networking-technology-provider-ikanos
http://www.ikanos.com
- In September 2014, Ikanos Communications announced that Tallwood Venture Capital and Alcatel-Lucent purchased $11.25 million and $5.0 million, or approximately 27.4 million and 12.2 million shares, of the company’s common stock, respectively, at $0.41 per share for aggregate gross proceeds of $16.25 million. Alcatel-Lucent committed to loan the company up to $10.0 million, subject to the terms of the loan agreement. Tallwood has also agreed to purchase an additional $11.25 million of common stock at the same per share price. In addition, Alcatel-Lucent has entered into a collaboration with Ikanos on the development of ultra-broadband products.
By Kourosh Amiri, VP Marketing, Ikanos, Inc. Demand for high-speed broadband access by consumers has never been more intense than it is today. Rapidly increasing numbers of connected devices inside the home and the adoption of higher-resolution (4K and 8K) television are just the tip of the iceberg. Home automation, remote patient monitoring, and multi-player gaming – among countless other applications – are contributing to an Internet...