According to an 8K filed with the SEC, MUFG Union Bank, Wells Fargo Bank, Citizens Bank and BMO Harris Bank served as lenders on an incremental amendment for a $175 million term loan A facility for MaxLinear. The facility was upsized from an initially announced $140 million. MaxLinear is using the financing to fund its completed acquisition of Intel’s home gateway platform division.
According to the 8K, MUFG is the successor administrative agent and the successor collateral agent while JPMorgan Chase is the prior administrative agent and prior collateral agent.
MaxLinear expects to initially add approximately $80 million to $90 million in quarterly revenue from the acquisition in the first full quarter post close. The acquisition is expected to be accretive to MaxLinear’s non-GAAP earnings.
“First and foremost, we are excited to welcome a world-class engineering team which complements MaxLinear’s significant analog/RF mixed-signal capabilities with large scale SoC product, software and comprehensive networking and signal-processing competencies spanning all our target markets. With the acquisition now complete, and the addition of WiFi, ethernet, and broadband gateway processor SoC technology assets to our portfolio, we will execute rapidly to expand our value proposition to our existing customers. These assets will not only drive scale, but also create tremendous new growth opportunities in broadband access, connectivity, power and infrastructure markets,” Kishore Seendripu, CEO of MaxLinear, said. “We are also encouraged by the strength in the broadband access business driven by the transformative work-from-home market dynamics, as well as the early adoption of the WiFi product.”
MaxLinear is a provider of radio frequency, analog and mixed-signal integrated circuits for the connected home, wired and wireless infrastructure, and industrial and multimarket applications.