Broadband silicon vendor Ikanos Communications continues its acquisition path as it announced the completion of its purchase of Conexant's Broadband Access product line. Under the terms of the agreement, Ikanos bought Conexant's Broadband Access product line for about $54 million in cash. Also, Tallwood Venture Capital, an investment firm that specializes in the semiconductor industry, invested $42 million in Ikanos.
With the Tallwood investment, George Pavlov, general partner of Tallwood Venture Capital, and Dado Banatao, managing partner and founder of the firm, become members of Ikanos' Board of Directors. Pavlov and Banatao will replace Gopal Venkatesh and Elizabeth Fetter, who are stepping down from their seats on the board. Meanwhile, Craig Garen, the former general manager of Conexant's Broadband Access division, will become Ikanos' Chief Operating Officer.
Ikanos' completion of the Conexant acquisition reflects ongoing alignment in the broadband silicon market segment. Conexant, which will now focus its attention on the imaging, audio and video segments, is not the only silicon vendor to get out of the broadband silicon business. In July, fellow silicon vendor Infineon, which had previously high hopes for the broadband sector when it purchased Texas Instruments' DSL CPE unit in 2007, sold its wireline division to Golden Gate Capital for $348 million.
- here's the official release
Centillium selling DSL unit to Ikanos
Infineon gets out of the wireline business