Qualcomm Atheros set to acquire Ikanos Communications

Qualcomm, Inc. (NASDAQ:QCOM) has announced today that its subsidiary, Qualcomm Atheros, has entered into an agreement to purchase Ikanos Communications, a provider of ultra-performance broadband networking semiconductors and softwares designed for central office and gateway solutions. The takeover is expected to close by year-end, assuming a majority of shares tendered and regulatory approval.

Ikanos’ board of directors has unanimously approved the transaction and has recommended the offer to the company’s stockholders. The capture gives the chip giant access to A/VDSL2 and G fast modem technology as well as chipsets as it tries to venture more into the connected home business.

Ikanos offers multi-mode gateway processor and accelerator technology for fiber, LTE, Ethernet and hybrid-copper applications. The company’s software that manages broadband connections as well as voice-over-IP services should be of great use for QUALCOMM, Inc.

The move is part of a plan to supplement Qualcomm Atheros’ footprint in the carrier fixed line segment with the addition of broadband access and modem technologies. Jana said it would ask Qualcomm to consider a range of possibilities to boost its share price, including a breakup. The Qualcomm Subsidiary boasts a high pedigree in several modern technologies such as carrier Wi-Fi and wired connectivity, which tie in closely to the home gateway and related solutions provided by Ikanos, as both outfits look towards providing a central hub for an all-things connected smarthome.

For the six months ended June 28, Ikanos reported a net loss of $24.3 million on revenue of $21.2 million, down from $25.8 million for the same period a year ago. Revenues fell slightly to Dollars 11.1 million from USD 11.3 million, while the company’s gross margin rose to 51 percent from 49.