Qualcomm's Atheros Unit to Buy Ikanos for $2.75/Share in Cash

Qualcomm Incorporated

today announced that its subsidiary, Qualcomm Atheros, Inc., has entered into a definitive merger agreement to acquire Ikanos Communications, Inc.

, a high performance broadband networking semiconductor and software provider enabling both central office and home gateway solutions. Pursuant to the agreement, Qualcomm Atheros, through a wholly-owned subsidiary, will commence a tender offer to acquire all of the issued and outstanding shares of common stock of Ikanos for $2.75 per share in cash, and assume all outstanding indebtedness at the closing of the transaction. The acquisition is intended to expand Qualcomm Atheros' footprint in the carrier fixed line segment with the addition of high performance broadband access and modem technologies critical to enhancing users' connected experiences in the home. The home gateway extends Qualcomm Atheros' leadership in carrier Wi-Fi and wired connectivity, while providing a central hub for Internet of Everything (IoE) enabled devices, services and 3G/LTE small cells. Ikanos' board of directors has unanimously approved the transaction and recommends the offer to Ikanos stockholders. The transaction is expected to close before the end of this year and