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MaxLinear Pays $150M for Intel Home Gateway Platform Division

MaxLinear has emerged as the successful buyer of Intel Corp.’s Home Gateway Platform Division, paying $150 million in cash for the unit that makes chips for home gateway products.

The addition of the Intel unit delivers Carlsbad, Calif.-based MaxLinear a new Wi-Fi processor product line, along with other broadband products, to complement its radio frequency and mixed-signal processors used in high-speed cable, fiber optic and ethernet Internet networks.

The move positions MaxLinear to compete head-one with Broadcom as a vendor of processors used in DOCSIS-enabled home routers and gateways, as well as Wi-Fi access points and ethernet broadband gear.

“These assets add significant scale to our entire business while enabling us to provide a compelling Wi-Fi product offering with tremendous growth opportunities inside and outside of the connected home, including expanding the portfolio to include Internet of Things solutions,” said Kishore Seendripu, chairman and chief executive of MaxLinear, in a statement.

MaxLinear expects to add $60 million to $70 million in quarterly revenue from the deal. The deal is expected to close in the third quarter.

Intel had been shopping its Home Gateway Platform Division for several months, with the Silicon Valley giant divesting underperforming divisions as of late. In 2019, for example, the Santa Clara-based company sold its smartphone cellular modem division to Apple for $1 billion.