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Entropic Communications, Inc. (ENTR)

  • Tue, Feb. 3, 4:45 PM
    • Broadband/consumer electronics RF chipmaker MaxLinear (NYSE:MXL) is acquiring satellite/home networking chipmaker Entropic (NASDAQ:ENTR) for $287M ($181M net of cash). The price is equal to $3.01/share, representing an 11% premium to Entropic's Tuesday close.
    • Entropic shareholders will get $1.20/share in cash and 0.22 MaxLinear shares for each share they own. They'll own 35% of the post-merger company.
    • MaxLinear: "The acquisition will add significant scale to MaxLinear's analog/mixed-signal business, expanding its addressable market and enhancing the strategic value of MaxLinear's offerings ... MaxLinear sees immediate cross-selling opportunities and longer-term platform integration opportunities with Entropic's leading MoCA [home networking] technology."
    • The company also highlights Entropic's portfolio of 1.5K patents and patent applications. $20M/year in cost synergies are expected in year 1; the deal is expected to close in Q2.
    • Separately, MaxLinear is affirming its Q4 revenue guidance (earnings arrive on Feb. 9), and guiding for FQ1 revenue of $34M-$35M, above a $33.7M consensus. Entropic, which has been struggling in recent quarters, has just posted a slight Q4 beat and guided for Q1 revenue of $45M-$46M, above a $40M consensus.
    • MXL +3.6% AH. The chip industry has been rapidly consolidating over the last 18 months.
    | Tue, Feb. 3, 4:45 PM | 1 Comment
  • Jun. 6, 2013, 1:27 PM
    Entropic (ENTR -3.4%) has acquired Mobius Semiconductor, a developer of analog/mixed-signal chips for cable/satellite TV hardware, for $13M in cash + retention incentives. Mobius complements Entropic's set-top box SoC and home networking chip businesses; the former is seeing tough competition from Broadcom. Mobius also happens to be based out of Broadcom's hometown of Irvine, CA. (PR)
    | Jun. 6, 2013, 1:27 PM | 2 Comments
  • Feb. 27, 2012, 1:23 PM
    Entropic Communications (ENTR -0.2%), a maker of chips for cable and satellite gear, is acquiring the set-top box system-on-chip (SoC) assets of bankrupt Trident Microsystems for $65M. The move could bolster Entropic's ability to compete with set-top box SoC market leaders Broadcom (BRCM) and STMicroelectronics (STM).
    | Feb. 27, 2012, 1:23 PM | Comment!
  • Jan. 4, 2012, 10:46 AM
    Entropic (ENTR -4.4%) slightly raises its Q4 guidance for EPS to $0.11 and for revenue to $56M, above Street forecasts in both cases. The company, which designs chipsets for video and broadband multimedia applications, also says it will bid $55M for assets of Trident Microsystems' (TRID) set-top box chips business.
    | Jan. 4, 2012, 10:46 AM | Comment!
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Company Description
Entropic Communications Inc provides semiconductor solutions. The Company transform how traditional HDTV broadcast and Internet protocol, or IP,-based streaming video content is distributed throughout the homes.