By Colleen Taylor, Contributing Editor — Electronic News, 4/10/2007
Digital entertainment chipset maker Entropic Communications Inc. today announced that it has signed a definitive agreement to acquire broadband RF SoC developer RF Magic Inc. Terms of the deal were not disclosed.
The newly merged entity formed by the two San Diego-based semiconductor companies will retain the Entropic Communications name. Patrick Henry, Entropic’s current president and CEO, 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 Communications once the deal closes.
“This merger brings together two independently successful companies in one of the fastest growing segments of the semiconductor market,” Henry said in a statement. “It’s a very natural and ideal fit for both of us. We are both focused on delivering multimedia content into and around the home and have developed two exceptionally talented teams with core competencies not only in chip design but also in systems level design.”
“With our combined domain expertise in satellite, telco and cable operator-based deployments, we are confident that we have the team in place to take advantage of the market opportunities, much more so than if we remained separate entities,” Foley added in the statement.
Some analysts say that digital media content delivery has emerged as a primary driver of the global consumer electronics industry and its associated semiconductor market. According to market research firm iSuppli Corp., the broadband video-on-demand market for media is set to reach nearly 4.5 billion units by 2010.
The digital media market has also garnered support from private equity. Entropic closed on a venture funding round worth $25 million.