[SatNews] Entropic Communications, Inc. (Nasdaq:ENTR) has acquired specific direct broadcast satellite intellectual property…
…and corresponding technologies from PLX Technology, Inc. (Nasdaq:PLXT). 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. Entropic is currently the market leader with its analog channel stacking switch (CSS) technology. Through this agreement Entropic obtained dCSS technology, which is a key enabler of future products in the DBS market. In connection with the asset purchase, Entropic hired a small engineering team from PLX.
