|Lantiq announces its first acquisition, expands its portfolio in Home Networking and sets up a technical competence center in Massachusetts|
|Neubiberg, Germany and Milpitas, CA - October 20, 2009 - Lantiq today announced that it has entered into a definitive agreement to acquire Home Networking and DSL-related assets and intellectual property (IP) from Massachusetts-based Aware Inc (NASDAQ: AWRE). Lantiq also announced the establishment of a technical competence center in Massachusetts, where a team of experienced engineers will drive innovation in the emerging home networking market.
“This acquisition is another milestone for Lantiq as we expand our portfolio and proactively drive the emerging home networking market”, said Christian Wolff, designated CEO of Lantiq. “We envision connected homes using wireline home networking where service and utility providers can add value with multimedia and smart energy control.”
Aware has a long history as the leading provider of DSL silicon IP to semiconductor companies, especially in OFDM/DMT technology. Over the years the company has developed strong competence in home networking solutions including ITU-T G.hn. Earlier this month, key components of G.hn were agreed by ITU (www.itu.int/newsroom/press_releases/2009/46.html), paving the way for a unified worldwide standard for coax cable, phone line, and power line.
Aware and Lantiq share a long term partnership in the DSL DMT space. As part of the deal, Lantiq will gain access and ownership of Aware’s DSL and home networking IP including certain patents. In the future, Aware and Lantiq will continue to maintain close cooperation in the area of embedded wireline diagnostics.
The transaction is expected to close by the end of 2009 and is subject to the closing of the acquisition of Infineon’s Wireline Division Communications by Golden Gate Capital/Lantiq.
Lantiq builds on a strong foundation of more than 20 years in the telecommunication industry and sees a huge growth potential in Home Networking as the technology goes into mass deployment. Lantiq will continue to drive innovation and integration, partnering with the key players around the world to develop next-generation Access and Home Networks.
Lantiq powers the broadband experience, by offering the broadest and most innovative product portfolio for Next Generation Networks and the Digital Home. Lantiq will employ more than 900 people in Europe, North America and the Asia Pacific region. To be headquartered in Neubiberg, Germany, the company will offer a broadband communication portfolio encompassing analog, digital and mixed-signal ICs along with comprehensive software suites, enabling system manufacturers to design high-speed data and telecommunication systems solutions for broadband access and customer premises equipment. Funded by Golden Gate Capital, Lantiq is a fabless company, offering semiconductor solutions deployed by major carriers and in home networks in every region of the world.
About Golden Gate Capital
Golden Gate Capital is a San Francisco-based private equity investment firm with over $8 billion of capital under management. The firm's charter is to partner with world-class management teams to make equity investments in situations where there is a demonstrable opportunity to significantly enhance a company's value. The principals of Golden Gate have a long and successful history of investing with management partners across a wide range of industries and transaction types, including corporate divestitures, leveraged buyouts, and recapitalizations. For additional information, visit www.goldengatecap.com.