Qualcomm Inc. (Nasdaq: QCOM) is buying Ikanos Communications Inc. (Nasdaq: IKAN), a networking semiconductor and software provider, for about $47 million.
The Fremont, California-based company provides semiconductor products and software for broadband. Qualcomm, headquartered in San Diego, provides 3G, 4G and next-generation wireless technologies. The buyer made the acquisition through subsidiary Qualcomm Atheros.
“The combination of Qualcomm Atheros’ broad home gateway IP portfolio, including Wi-Fi, powerline, small cell, and Ethernet switch technologies, and Ikanos’ advanced wired modem technology, is designed to create a complete solution for a wide range of home gateway products to better serve the carrier segment,” says Rahul Patel, senior vice president at Qualcomm.
The purchase price works out to $2.75 per share. Before the deal was announced, Ikanos’ shares closed at $1.75.