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Entropic Communications, Inc. (ENTR) Acquires IP And Technology From PLX

|Includes: Entropic Communications, Inc. (ENTR)

Entropic Communications announced that it had obtained specific direct broadcast satellite intellectual property and corresponding technologies from PLX Technology. This acquisition deals with the design and development of a digital channel stacking switch semiconductor product for up to $8 million.

Entropic Communications is focused on providing technology and software for internet connected home entertainment, including HDTV broadcast and set top box system-on-a-chip hardware that allow cable TV service providers to offer new types of multimedia content. PLX Technology is a provider of semiconductor-based connectivity solutions primarily targeting the enterprise and consumer markets.

The assets and technology Entropic has obtained are complimentary to the company's direct broadcast satellite outdoor unit product line, and anticipates that the acquisition will be beneficial to the company's transition from DBS to Sat-IP technology. Entropic has also agreed to pay a one-time $4 million licensing fee for intellectual property pertaining to the acquired assets.

Vinay Gokhale, senior vice president of corporate development and strategy at Entropic, said, "The transaction with PLX provides key technologies that will accelerate our DBS ODU product roadmap. 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."

David Raun, senior executive vice president and general manager at PLX, said, "Entropic's portfolio offers an excellent strategic match for the divesture of our unique digital satellite product. 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."

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