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MaxLinear acquires Silicon Motion for $8 billion

Curious movement of the industry today, and it is that MaxLinear, a leading provider of radio frequency (RF), analog and mixed-signal integrated circuits for the broadband, connectivity and infrastructure marketsacquired the very SiliconMotionthe world’s leading NAND flash controller for popular SSD storage drives.

This agreement was made in the form of a cash payment plus shares which, added together, gives a total cost $8 billion. Specifically, the payment is divided into $93.54 per share plus the delivery of 0.388 shares of MaxLinear common stock.

Once the acquisition is complete, the combined company will have a highly diversified technology platform with strong positions in the broadband, connectivity, infrastructure and storage end markets.

Combining MaxLinear’s RF, analog/mixed-signal, and processing capabilities with industry-leading Silicon Motion NAND flash controller technology, completes a total technology stack that fully captures end-to-end platform functionality and accelerates business expansion into enterprise, consumer, and many other growth-adjacent markets.

Combined revenues are expected to exceed $2 billion annually and are supported by the breadth of technology to address a total market opportunity of approximately $15 billion.

MaxLinear x Silicon Motion

“Today’s announcement celebrates the merger of two companies that have been driving significant innovation in their respective industries for more than a decade,” said Kishore Seendripu, Ph.D., President and CEO of MaxLinear.

“The increased scale of the combined organization creates a major new $2 billion+ player in the semiconductor industry, with compelling positions in a diverse set of end markets. MaxLinear has demonstrated a strong track record in successful integration and expects this combination to deliver solid growth, impressive operating margins and strong cash flow.”

“For 20 years, we’ve built Silicon Motion on a commitment to advancing innovation, partnering with all of our valued customers and supporting our colleagues around the world,” said Wallace Kou, president and CEO of SiliconMotion.

“Combining Silicon Motion with MaxLinear creates significant economies of scale, accelerates our expansion into enterprise storage markets, and brings together unparalleled intellectual property to continue serving our customers with high-quality technical support and expertise. . This transaction will provide attractive shareholder value. , will position our company to achieve our growth objectives and advance our position in high-growth storage end markets. We are thrilled to partner with the MaxLinear team to take the combined company to the next level.

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