Orange County Register

Conexant Systems Inc., a Newport Beach, communications chip maker, has agreed to sell its broadband access product line to Ikanos Communications Inc in Fremont for $54 million in cash.

About 400 Conexant employees in the United States, India and China will join Ikanos when the transaction closes, probably in the third quarter.

The transaction is part of Conexant’s restructuring efforts. It will now focus exclusively on providing services for imaging, audio, video and various embedded-modem applications.

Ikanos, which develops chips and software products for network equipment makers, hopes that Conexant’s broadband access products will strengthen the Fremont company’s market position in North America and China.

The acquisition will double Ikanos’ revenue and increase earnings in the first year after the deal closes.

In connection with the transaction, Tallwood Venture Capital, which specializes in the semiconductor industry, agreed to buy 24 million of Ikanos common shares for $42 million, or $1.75 a share.

Tallwood will also receive warrants to purchase an additional 7.8 million common shares at $1.75 a share.

Other acquisition and investment stories…..

• Medical device expert joins O.C. investor group
• O.C. company acquires pay-at-the-pump technology
• Q1 venture investment lowest in more than 10 years
• 4 O.C. companies rake in investment dollars
• So. Cal businesses sell for less in Q1-corrected
• Private equity deals nosedive 68% in first quarter
• Venture-backed firms can’t find buyers or go public
• O.C. company buys Peruvian firm
• O.C. company receives $5.5 million
• Two O.C. firms raise millions in venture capital
• O.C. manufacturer sold, moved to Washington
• 2 O.C. firms involved in business buyouts
• Luxury hybrid sports car maker raises $94 million
• Merger = survival for two O.C. firms

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