MaxLinear Makes Play for Entropic

In a deal that further consolidates the silicon market for set-tops, high-speed home networking and cable broadband modems gear, MaxLinear announced Tuesday that it has inked a deal to acquire Entropic Communications.

Under the deal, Entropic shareholders will receive $1.20 per share in cash and 0.2200 shares of MaxLinear common stock for each Entropic common share outstanding. MaxLinear said the implied total transaction value of the deal is about $287 million, with an implied enterprise value of $181 million, net of Entropic’s cash balance as of Dec. 31, 2015. MaxLinear expects the deal will achieve operating synergies in excess of $20 million in the first full calendar year post-close.

Shares of Entropic were up 21 cents (7.78%) to $2.91 each in after-hours trading Tuesday.

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