MaxLinear acquires NanoSemi

MaxLinear has acquired NanoSemi for $10 million in cash and 804,163 shares of MaxLinear’s Common Stock. In addition, the NanoSemi security holders will receive $35 million in deferred cash payments payable in 2021, and the NanoSemi security holders may also receive up to an additional $35 million in potential earnout consideration, subject to the acquired business’s satisfying certain financial objectives.

NanoSemi, which is a Boston-based private company that spun out of MIT in 2014, develops intellectual property that utilizes patented machine learning techniques to improve signal integrity and power efficiency in SoCs, ASICs, and FPGAs used in next-generation communication and artificial intelligence systems. The company’s technology enables higher throughput connections for 5G and Wi-Fi base stations and smartphones while simultaneously dramatically reducing energy consumption.

“MaxLinear is thrilled to welcome a phenomenal team which has brought fresh innovation to a very difficult technology problem at the core of the 5G system. The customers they have attracted and the results they have demonstrated speak for themselves. NanoSemi technology is truly an order of magnitude improvement over existing solutions,” said Kishore Seendripu, Ph.D., Chairman and CEO of MaxLinear. “Together with our silicon solutions, we can offer a leading portfolio of products to our wireless systems customers which, in turn, can enable meaningful capital expenditure and operating expense benefits to wireless operators.”

“We are excited to join MaxLinear,” said NanoSemi CEO, Helen Kim. “This transition will enable us to serve more customers with our technology and to further accelerate our pace of innovation in the 5G area. Our joint solutions will dramatically reduce the enormous amounts of power consumed by 5G systems today.”