Entropic nabs Trident for $65M
Entropic's offer to buy Trident Microsystems has been approved. Entropic had to up its original bid of $55 million by another $10 million to acquire the set-top silicon maker.
Today's announcement follows the completion of an auction, and the final transaction is subject to approval of the United States Bankruptcy Court for the District of Delaware. A court order authorizing Trident to sell the STB SoC assets to Entropic is expected to be entered on or about March 6.
Entropic, the prime mover behind the MoCA home networking standard, was the only company publicly acknowledged to be bidding on Trident's set-top system-on-a-chip (SoC) assets.
Trident filed for Chapter 11 bankruptcy protection at the beginning of January. The company's CEO, Bami Bastani, said the company was struggling with a triple whammy of increased pricing pressures, lower demand in consumer electronics and slower-than-anticipated new product adoption.
The company is betting it can leverage its position as a key supplier of MoCA chips to revive Trident's SoC business.
"This acquisition marks an important milestone for Entropic and is an exciting new chapter in our company's history, enabling us to combine our best-in-class MoCA solutions, including MoCA 2.0, with Trident's STB SoC business to deliver a complete system solution to the world's premier cable, telco and satellite service providers, while expanding our total addressable market over the next several years," said Patrick Henry, president and CEO of Entropic.
Entropic said it expects to make employment offers to approximately 375 Trident employees worldwide.