Entropic Acquires DBS Technology from PLX for Long-Term Sat-IP Strategy
By Jeffrey Hill | July 12, 2012
[Satellite TODAY Insider 07-12-12] Entropic Communications, a semiconductor solutions provider for the connected household market, has acquired specific direct broadcast satellite (DBS) intellectual property and corresponding technologies from PLX Technology, a global supplier of high-speed connectivity solutions for emerging data center architectures, Entropic announced July 11.
Entropic purchased assets related to the design and development of a digital channel stacking switch (dCSS) semiconductor product for as much as $8 million. In addition to the asset purchase agreement, Entropic said it would pay a one-time $4 million licensing fee to PLX for intellectual property which is related to the acquired assets, which aim to complement the company’s current DBS outdoor unit product portfolio
Entropic Senior Vice President Vinay Gokhale said he anticipates the assets will strengthen his company’s long-range strategic position as the DBS market transitions to Sat-IP, where satellite signals are converted to Internet Protocol (IP) and distributed over an IP network to any IP-enabled client device.
“The transaction with PLX provides key technologies that will accelerate our DBS ODU product roadmap," Gokhale said in a statement. "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.”
The technology acquisition should strengthen Entropic’s position in the analog channel stacking switch (CSS) technology market. As part of the asset purchase, Entropic also hired a small engineering team from PLX.
PLX Technology Senior Executive Vice President and General Manager David Raun said the dCSS technology solutions Entropic obtained should be a key enabler of future products in the DBS market.
“Entropic’s portfolio offers an excellent strategic match for the divesture of our unique digital satellite product,” Raun said in a statement. “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.”