Atheros Communications has beefed up its ability to take a larger stake in the home networking business by acquiring Intellon, whose power-line home networking technology is targeted at handling the growing use of streaming music, video, and telephony over home networks.
Atheros, a supplier of wireless LAN and Ethernet solutions, reported that it will acquire Intellon in a stock and cash transaction valued at $244 million. Atheros said the acquisition will help it achieve its goal of improving connectivity across networking, computing, and mobile device markets. Atheros is betting that power-line networking will become a workhorse network in homes as electronic media devices continue to proliferate.
Craig Barratt, president and CEO of Atheros, said the acquisition will help it "enable dynamic meshing of wireless and wired bandwidth, providing robust transmission of data, voice, and multi-media content on the growing number of networked devices in the home."
Although Wi-Fi is solidly established to connect computers and other devices in homes, the short-range wireless technology is likely to become strained as more technologies, particularly HD video streams, become commonplace.
Intellon already makes and markets a broad array of power-line products. In-home power-line use is expected to grow more than 30% a year in the next few years, according to recent market research reports.
The firms expect the acquisition to close in the fourth quarter subject to customary closing conditions and approval by Intellon shareholders.
At the 2009 InformationWeek 500 Conference, C-level executives from leading global companies will meet to discuss how they're delivering on the most critical business priorities of the day. Join us Sept. 13-15 at the St. Regis Monarch Beach, Calif. Find out more and register.