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Entropic Communications Acquires Direct Broadcast Satellite Intellectual Property From PLX Technology

Jul 11, 2012

 Entropic Communications, Inc. /quotes/zigman/107330/quotes/nls/entr announced it acquired specific direct broadcast satellite intellectual property and corresponding technologies from PLX Technology, Inc. /quotes/zigman/63062/quotes/nls/plxt  a leading global supplier of high-speed connectivity solutions enabling emerging data center architectures. The purchased assets relate to the design and development of a digital channel stacking switch (dCSS) semiconductor product for up to $8 million. In addition to the asset purchase agreement, Entropic will pay a one-time $4 million licensing fee for intellectual property which is related to the acquired assets.

The acquired assets are complementary to Entropic's current direct broadcast satellite (DBS) outdoor unit (ODU) product portfolio. The Company anticipates the assets will strengthen its long-range strategic position as the DBS market transitions to Sat-IP (or 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," said Vinay Gokhale, senior vice president, Corporate Development and Strategy at Entropic Communications. "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."

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