ADI to sell ADSL ASIC line to IkanosMANHASSET, N.Y. Semiconductor supplier Analog Devices Inc. has decided to sell its Fusiv network processor and Asymmetrical Digital Subscriber Line (ADSL) application-specific integrated circuit (ASIC) product line to Ikanos Communications Inc., a Fremont, Calif.-based supplier of broadband products, for $30 million in cash.
The transaction is expected to complete in the first quarter of 2006.Analog Devices (Norwood, Mass.) considers the divesture part of its strategy in improving profitability in signal processing. The deal frees it up to assign more resources to its growing BlackFin DSP customer and applications base. "It's a bit focusing, particularly on our Blackfin line as we've been so successful there," said Rob DeRobertis, director of marketing programs at ADI. The Blackfin processor was prominent in ADI's recent showing at the Consumer Electronics Show in Las Vegas, where it was demonstrated in devices ranging for multimedia players to biometric security systems. "We also see expanding applications in set-top boxes and automotive telematics," added Robertis. The Fusiv and ADSL ASIC line represented between 2 and 3 percent of ADI's overall revenue last quarter. The sale does not include ADI's line of xDSL-related analog components, such as line drivers, and the company will keep control of its 21xx DSPs at the heart of Fusiv and sell them to Ikanos as needed. From Ikanos's point of view, the deal will improve its DSL performance offering and the Fusiv processor will complement its VDSL physical-layer line-up. It will also extend its Layer 1 capabilities with Layer 2 through Layer 7 gateway technologies, including routing, security, wireless LAN, voice over IP and quality of service. Ikanos hopes to capitalize on global demand for video services.