Chipmaker Entropic Communications, which led the charge for the MoCA home networking standard that runs on coaxial cable, has signed a definitive agreement to acquire fellow chipmaker RF Magic, which develops broadband radio frequency (RF) systems-on-a-chip.
The companies say the synergy is that their non-competitive but complementary technologies focused on the market for connected home entertainment.
Last month Entropic shipped its five-millionth c.LINK chipset, which is based on the MoCA standard, which enables the delivery of digital video and entertainment in and around the home using existing coaxial cabling.
Entropic chips go into DVR set-top boxes, broadband routers for the home, residential gateways, Ethernet-to-coax bridges and optical network termination (ONTs) units. Telephone, cable and satellite TV services buy the boxes to install in their pay-TV and broadband subscribers’ homes.
iSuppli predicts the market for networkable devices that run over existing coax cabling in the home is expected to total 75 million per year by 2010.
The acquisition of RF Magic gives Entropic technology and expertise in digital TV standards, including tuners for over-the-air, satellite and DVB-C cable television. RF Magic also produces chips for WiMAX.
Most recently RF Magic announced an advanced single-chip digital video broadcasting over cable (DVB-C) silicon tuner integrated circuit developed specifically for applications compliant with the international DVB-C standard that’s popular in Europe, Asia, Australia and South Africa. The IC works with STMicro’s newest video demodulator and integrated MPEG decoder/demodulator. According to RF Magic, the RF4800 is ideal for motherboard designs in set-top boxes.
With the addition of RF Magic, Entropic can offer equipment makers “a comprehensive product portfolio for the connected home entertainment market,” said Patrick Henry, president and CEO of Entropic. Both companies, he said, are “focused on delivering multimedia content into and around the home.” They both also have “core competencies not only in chip design but also in systems level design,” he said.
Mark Foley, president and CEO of RF Magic, said the companies’ combined expertise in satellite, telco and cable operator-based deployments will allow them to take advantage of the market opportunities by working together rather than separately.
Mike Wolf, principal analyst at ABI Research, said the merger “brings together many pieces of the puzzle being required by systems OEMs, video service providers and entertainment companies to effectively compete in the new environment” of the “anytime, anywhere” connected consumer.
The two San Diego-based semiconductor companies did not announce terms. The resultant company will be called Entropic Communications. Henry will be the CEO of the merged company. Mark Foley, RF Magic’s current president and CEO, will become the president and COO of Entropic once the deal closes.