Centillium Communications agreed to sell its DSL business to Ikanos Communications for approximately $12 million in cash. The deal, which is expected to close in Q1 2008, includes assets, technology and a number of the employees from Centillium’s DSL team. Ikanos will also assume responsibility and continue to support Centillium’s worldwide DSL customer relationships.
As a result of the sale and certain related restructuring actions, Centillium expects to reduce its operating expenses by approximately $18 million per year, beginning in the second quarter of 2008.
“The sale of our DSL business will allow us to focus our resources on Optical and VoIP, our two key growth businesses,” said Faraj Aalaei, co-founder and CEO. “We believe that with this targeted focus, we will better serve our customers, reduce our operating loss and improve our prospects,” said Aalaei.
“We are very pleased to bring into Ikanos Centillium’s DSL product lines, the underlying intellectual property and the talented engineering
team that created these products,” said Michael A. Ricci, Ikanos’ president and CEO. “Centillium’s engineers have already developed technology that we expect to help expand Ikanos’ digital home solutions and accelerate the introduction of next generation VDSL2 platforms. Their products, people and intellectual property — including nearly 60 patents and applications — further enhance Ikanos’ leadership position and provide an expanded customer base in Europe while fortifying Ikanos’ leading position in Japan.”http://www.centillium.comhttp://www.ikanos.com
