MaxLinear Inc. announced that it has completed the acquisition of NanoSemi, Inc., a provider of intellectual property that utilizes patented machine learning techniques to improve signal integrity and power efficiency in SoCs, ASICs and FPGAs used in next-generation communication and artificial intelligence systems.

The initial transaction consideration consisted of $10 million in cash and 804,163 shares of MaxLinear’s Common Stock. In addition, the NanoSemi securityholders will receive $35 million in deferred cash payments payable in 2021, and the NanoSemi securityholders may also receive up to an additional $35 million in potential earnout consideration, subject to the acquired business’s satisfying certain financial objectives. The stock consideration was issued in reliance on exemptions from the registration requirements of the Securities Act of 1933, as amended. In connection with the acquisition, MaxLinear agreed to provide the NanoSemi securityholders with certain registration rights with respect to the shares of MaxLinear Common Stock they received in the acquisition.

NanoSemi is a Boston-based private company that spun out of MIT in 2014. The company’s technology enables higher throughput connections for 5G and Wi-Fi base stations and smartphones while simultaneously dramatically reducing energy consumption.

MaxLinear’s acquisition of NanoSemi brings together market-leading signal processing technology and silicon solutions for 5G radio customers. This combination will allow customers to reduce the time and resources required to bring complex new wireless products to market.

“MaxLinear is thrilled to welcome a phenomenal team which has brought fresh innovation to a very difficult technology problem at the core of the 5G system. The customers they have attracted and the results they have demonstrated speak for themselves. NanoSemi technology is truly an order of magnitude improvement over existing solutions,” said Kishore Seendripu, Ph.D., chairman and CEO of MaxLinear. “Together with our silicon solutions, we can offer a leading portfolio of products to our wireless systems customers which, in turn, can enable meaningful capital expenditure and operating expense benefits to wireless operators.”

“We are excited to join MaxLinear,” said NanoSemi CEO, Helen Kim. “This transition will enable us to serve more customers with our technology and to further accelerate our pace of innovation in the 5G area. Our joint solutions will dramatically reduce the enormous amounts of power consumed by 5G systems today.”