For those not in the know, the Home Gateway Platform makes chips for home internet access gear that enable wireless connections.
The all-cash deal is valued at $150 million and is subject to regulatory approvals and other customary closing conditions. The divestiture is expected to conclude in third-quarter 2020.
The connected home unit has been a part of Intel’s Internet of Things group that registered sales of $1.16 billion in fourth-quarter 2019, up nearly 16.1 percent year on year.
Intel has been facing stiff competition in connected home business from Broadcom and Qualcomm.
Intel’s CEO, Bob Swan, is exploring options to flog off Chipzilla’s less competitive business areas and this is part of that.
In December 2019, Intel concluded the divestiture of majority of its smartphone modem business to Apple for nearly $1 billion.
Later it complained that it was compelled to sell off its smartphone modem business “at a multi-billion dollar loss”, owing to Qualcomm’s anti-competitive behaviour.
Swan has pointed out that Intel’s memory business has been sluggish and might consider seeking a partner for that too.
Areas were Intel is doing better are in field programmable gate array (FPGA) to reduce latency and increase speeds are helping it develop custom solutions for big players. Further, the inclusion of Altera and eASIC is aiding the company to fortify its position in the networking space.