Wednesday, April 22, 2009

Ikanos Buys Product Line From Conexant, Gains Investment

Fremont-based Ikanos Communications, a manufacturer of broadband semiconductors, said today that it is in a definitive agreement to acquire a line of broadband access products from Conexant Systems. Ikanos said it would pay $54M for the business, funding the buy with $42M from venture capital firm Tallwood Venture Capital. Conexant's Broadband Access product line includes chips for the DSL market. Ikanos said that George Pavlov and Dado Banatao of Tallwood will join the firm's board of directors along with the funding; it also said that Tallwood will own approximately 45 percent of the publicly held firm's outstanding shares after the funding.