Entropic Acquires Mobius Semiconductor

Update: Entropic was acquired by MaxLinear for a total consideration of $287 million on February 3, 2015.

Entropic Gains Advanced Analog Mixed-Signal Technology and Expertise

SAN DIEGO -- June 6, 2013 -- Entropic (Nasdaq:ENTR), a world leader in semiconductor solutions for the connected home, announced today it acquired Mobius Semiconductor, Inc., a leading product development company focused on low power, high performance analog mixed-signal semiconductor solutions. Mobius products include high speed ADCs, DACs, ADPLLs, SERDES and proprietary Intellectual Property to achieve leading performance. Under the terms of the transaction, Entropic purchased Mobius for approximately $13 million in cash plus employee equity-based incentives.

The acquisition of Mobius enables Entropic to add advanced analog mixed-signal expertise and strengthen its competitive product offerings in both the cable and satellite markets. Founded in 2004, Mobius offers technology which blends signal processing with analog circuit design to dramatically reduce power dissipation while attaining leading-edge performance. The addition of the Mobius technology will enable Entropic to provide cable and satellite operators with solutions that encompass system designs that are low power, broadband, high-speed, and which capture the full bandwidth of the signal payload – to drive more entertainment streams and IP services to more connected devices in the home. This technology can also be leveraged by global satellite service providers to migrate to digital single-wire communications.

"By acquiring Mobius, we are reinforcing our commitment to global service providers seeking to advance their next-generation architectures with low power analog mixed-signal silicon solutions," said Patrick Henry, president and CEO, Entropic. "We believe the technology will enhance our product portfolio, enabling us to provide customers more integrated solutions for cable and satellite client and gateway devices, as well as for satellite outdoor unit solutions."

With this transaction, Entropic establishes a design center presence in Irvine, Calif., a recognized hub for high-tech semiconductor excellence. Among the team joining Entropic through the acquisition are mixed-signal and digital signal processing veterans and Mobius' founders, Dr. Aaron Buchwald and Dr. Avi Madisetti.

About Entropic

Entropic™ (Nasdaq:ENTR) is a world leader in semiconductor solutions for the connected home. The Company transforms how traditional HDTV broadcast and IP-based streaming video content is seamlessly, reliably, and securely delivered, processed, and distributed into and throughout the home. Entropic's next-generation Set-top Box (STB) System-on-a-Chip (SoC) and Connectivity solutions enable Pay-TV operators to offer consumers more captivating whole-home entertainment experiences by transforming the way digital entertainment is delivered, connected and consumed – in the home and on the go. For more information, visit Entropic at: www.entropic.com.