INTC Intel Corporation

By Michael Dabaie

MaxLinear Inc. shares were up 20% at $12.86 in late morning trading.

The company earlier agreed to acquire Intel Corp.'s Home Gateway Platform Division assets in an all-cash, asset transaction valued at $150 million. The Home Gateway Platform Division comprises Wi-Fi Access Points, Ethernet and Home Gateway SoC products deployed across operator and retail markets.

MaxLinear, a provider of radio frequency, analog and mixed-signal integrated circuits, said the acquisition will complement its existing portfolio, as well as creating potential new revenue opportunities in adjacent target end-markets.

MaxLinear said it expects to initially add about $60 million to $70 million in quarterly revenue, and that the acquisition is expected to boost its adjusted earnings in the first full quarter post close.

The company said the deal is expected to close in the third quarter of 2020. The transaction is not subject to financing contingencies.

MaxLinear also lowered its first-quarter revenue outlook. The company's revenue guidance provided on Feb. 5 was for $65 million to $70 million. The company now expects preliminary total revenue of about $61.75 million to $62.25 million in the first quarter. The preliminary revenue range reflects the impact of several industrywide dynamics related to the novel coronavirus, including supply constraints early in the quarter, and certain customer push-out requests, the company said.

Write to Michael Dabaie at michael.dabaie@wsj.com

(END) Dow Jones Newswires

April 06, 2020 11:30 ET (15:30 GMT)

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