Centillium (News - Alert) Communications, a provider of broadband access solutions, has entered into a definitive agreement to sell its DSL business to Ikanos (News - Alert) Communications for approximately $12 million.

 

Upon closing of the deal, which is expected to take place Q1 2008, Ikanos will acquire Centillium’s DSL business, which includes assets, technology, and the company’s DSL team — and also the DSL customer relationships of Centillium. With the sale as well as other related restructuring activities, Centillium will be able to cut its operating expenses by nearly $18 million per year, starting from the Q2, 2008.

 

“The sale of our DSL business will allow us to focus our resources on Optical and VoIP, our two key growth businesses,” Faraj Aalaei, co-founder and CEO said. “We believe that with this targeted focus, we will better serve our customers, reduce our operating loss, and improve our prospects.”

 

Centillium Communications is a provider of high performance, cost-effective semiconductor solutions. These solutions provide consumers, enterprises, and service providers with a competitive edge in broadband access. Centillium’s end-to-end system-on-chip solutions expedite development time-to-market for “last mile” products, with FTTP and VoIP technologies.

 

Ikanos Communications is a developer of chipsets that help carriers in offering Fiber Fast bandwidth and Gigabit network processing for enhanced triple play services. The company’s multi-mode VDSL2/ADSLx and network processor solutions drive access infrastructure and customer premises equipment for several network equipment manufacturers.