Entropic Communications Acquires Direct Broadcast Satellite Intellectual Property From PLX Technology
July 11 2012 - 8:00AM
Entropic Communications, Inc. (Nasdaq:ENTR), a world leader in
semiconductor solutions for the connected home, today announced it
acquired specific direct broadcast satellite intellectual property
and corresponding technologies from PLX Technology, Inc.
(Nasdaq:PLXT), a leading global supplier of high-speed connectivity
solutions enabling emerging data center architectures. The
purchased assets relate to the design and development of a digital
channel stacking switch (dCSS) semiconductor product for up to $8
million. In addition to the asset purchase agreement, Entropic will
pay a one-time $4 million licensing fee for intellectual property
which is related to the acquired assets.
The acquired assets are complementary to Entropic's current
direct broadcast satellite (DBS) outdoor unit (ODU) product
portfolio. The Company anticipates the assets will strengthen its
long-range strategic position as the DBS market transitions to
Sat-IP (or Sat>IP), where satellite signals are converted to
Internet Protocol (IP) and distributed over an IP network to any
IP-enabled client device.
"The transaction with PLX provides key technologies that will
accelerate our DBS ODU product roadmap," said Vinay Gokhale, senior
vice president, Corporate Development and Strategy at Entropic
Communications. "We currently deliver the largest product portfolio
for single cable technologies, supporting DBS operators worldwide.
We are optimistic our newly acquired assets will provide a path to
future technologies, ultimately leading toward highly-integrated
products that incorporate broadband capture and IP output."
"Entropic's portfolio offers an excellent strategic match for
the divesture of our unique digital satellite product," said David
Raun, senior executive vice president and general manager at PLX
Technology. "We are extremely pleased that this revolutionary
technology, along with a small and talented engineering team, has
found a new home, thus allowing us to focus on our core data center
products."
Entropic is currently the market leader with its analog channel
stacking switch (CSS) technology. Through this agreement Entropic
obtained dCSS technology, which is a key enabler of future products
in the DBS market.
In connection with the asset purchase Entropic hired a small
engineering team from PLX.
About PLX
PLX Technology, Inc. (Nasdaq:PLXT), based in Sunnyvale, Calif.,
USA, is an industry-leading global provider of semiconductor-based
connectivity solutions primarily targeting the enterprise and
consumer markets. The company develops innovative software-enriched
silicon that enables product differentiation, reliable
interoperability and superior performance. www.plxtech.com. Follow
PLX on Facebook, Twitter and YouTube.
About Entropic Communications
Entropic Communications, Inc. (Nasdaq:ENTR) is a leading global
provider of silicon and software solutions to enable connected home
entertainment. The Company transforms how traditional HDTV
broadcast and streaming video content is seamlessly, reliably, and
securely delivered, processed, and distributed into and throughout
the home. Entropic's next-generation home connectivity and set-top
box system-on-a-chip (SoC) solutions enable Pay-TV service
providers to offer consumers a more captivating whole-home
entertainment experience by delivering new, high-performing ways to
connect, engage, and enjoy multimedia content. For more
information, visit Entropic at: www.entropic.com.
The Entropic Communications logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=4255
Forward-Looking Statements
Statements in this press release that are not strictly
historical in nature constitute "forward-looking statements." Such
statements include, but are not limited to, statements regarding
the anticipated benefits of the proposed acquisition. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause Entropic's actual
results to be materially different from historical results or from
any results expressed or implied by such forward-looking
statements. These factors include, but are not limited to, the risk
that Entropic will be required to invest substantially more than
presently anticipated in order to realize the expected benefits of
the acquisition; risks associated with integrating a newly acquired
assets and employees into Entropic's existing business; Entropic's
reliance on the employees hired in connection with the acquisition
and the risk that Entropic will not be able to retain such
employees; risk that anticipated benefits of the acquisition will
not be realized; technology risks; competition; the risk that the
market for DBS ODU solutions may not develop as Entropic
anticipates; and other factors discussed in the "Risk Factors"
section of Entropic's Annual Report on Form 10-Q for the three
months ended March 31, 2012. All forward-looking statements are
qualified in their entirety by this cautionary statement. Entropic
is providing this information as of the date of this release and
does not undertake any obligation to update any forward-looking
statements contained in this release as a result of new
information, future events or otherwise.
Additional Information about PLX
These materials are for informational purposes only and shall
not constitute an offer to sell or the solicitation of an offer to
buy any securities, nor shall there be any sale of securities in
any jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such jurisdiction. Any offer with respect to
the acquisition of PLX will only be made through the prospectus,
which is part of the registration statement on Form S-4, which
contains an offer to purchase, form of letter of transmittal and
other documents relating to the exchange offer, as well as the
Tender Offer Statement on Schedule TO (collectively, and as amended
and supplemented from time to time, the "Exchange Offer
Materials"), each initially filed with the U.S. Securities and
Exchange Commission (the "SEC") by Integrated Device Technology,
Inc. ("IDT") on May 22, 2012. The registration statement has not
yet become effective. In addition, PLX filed with the SEC on May
22, 2012 a solicitation/recommendation statement on Schedule 14D-9
(as amended and supplemented from time to time, the "Schedule
14D-9") with respect to the exchange offer. Investors and security
holders are urged to carefully read these documents and the other
documents relating to the transactions because these documents
contain important information relating to the exchange offer and
related transactions. Investors and security holders may obtain a
free copy of these documents, as filed with the SEC, and other
annual, quarterly and special reports and other information filed
with the SEC by IDT or PLX, at the SEC's website at www.sec.gov. In
addition, such materials will be available from IDT or PLX, or by
calling Innisfree M&A Incorporated, the information agent for
the exchange offer, toll-free at (877) 456-3463 (banks and brokers
may call collect at (212) 750-5833).
Copyright © 2012 Entropic Communications, Inc. All rights
reserved. All other product or company names mentioned are used for
identification purposes only and may be trademarks of their
respective owners.
CONTACT: Entropic Investor Contact:
Debra Hart
+1 858.768.3852
debra.hart@entropic.com
Entropic Media/Industry Analyst Contact:
Chris Fallon
+1 858.768.3827
chris.fallon@entropic.com
PLX Investor Contact:
Leslie Green
Green Communications Consulting, LLC (for PLX)
+1 650.312.9060
leslie@greencommunicationsllc.com
PLX Company Contact:
Arthur O Whipple, CFO
PLX Technology, Inc.
+1 408.774.9060
investor-relations@plxtech.com
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