MaxLinear has announced the acquisition of certain assets and the assumption of certain liabilities related to Microsemi Broadband Wireless Division, which was previously part of PMC-Sierra. These acquired assets and assumed liabilities specifically address wireless infrastructure markets, including wideband RF transceivers and synthesizers for 3G, 4G, and future 5G cellular base station and remote radio head (RRH) unit platforms.
The acquisition will accelerate their market expansion efforts in the wireless infrastructure space. Based on third-party data and management estimates, MaxLinear estimates that the serviceable available market for wireless base station transceivers was approximately $500 million in 2015, and is expected to grow at a substantial rate over the next 5 years. This acquisition complements their multi-year organic development initiative in wireless microwave backhaul solutions.
MaxLinear paid approximately $21.0 million in cash and assumed certain liabilities in exchange for the acquired assets. They may record charges for amortization of purchased intangible assets in the second quarter of 2016, and expects that it will incur incremental transaction-related deal expenses and expenses associated with post-closing transition services related to the acquisition. The amounts of these charges have not yet been determined. Excluding the charges referenced above, they currently expects this transaction to be approximately neutral to GAAP and non-GAAP earnings per share in 2016 and to become accretive to GAAP and Non-GAAP earnings per share in 2017.
