Qualcomm Atheros to Acquire Ikanos Communications
Qualcomm Atheros (QCOM) plans to add a broadband networking semiconductor and software provider to its portfolio.
The wireless and wired technologies company has reached an agreement to acquire Ikanos Communications (IKAN). Qualcomm Atheros will pay $2.75 per share in cash to acquire all Ikanos shares and assume its outstanding debt after the transaction is finalized.
So what does the acquisition mean for Qualcomm Atheros? The company said the acquisition will help it extend its reach in the carrier fixed line segment.
“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,” Rahul Patel, Qualcomm Technologies’ senior vice president and general manager, said in a prepared statement.
Ikanos’ board of directors has unanimously approved the transaction and recommended the offer to its stockholders.
Qualcomm Atheros said the transaction is expected to close before the end of this year and is subject to customary closing conditions, including a minimum tender of a majority of outstanding shares of Ikanos and regulatory clearances in certain non-US jurisdictions.