QUALCOMM, Inc. (NASDAQ:QCOM)’s Atheros Inches Further In Being The Central Player Of IoT With The Acquisition Of Ikanos Communications, Inc. (NASDAQ:IKAN)


QUALCOMM, Inc. (NASDAQ:QCOM) is moving forward rapidly to develop the IoT industry with the Ikanos Communications, Inc. (NASDAQ:IKAN) acquisition.

The acquisition is very significant to Qualcomm Atheros because it boosts the company’s strategy towards IoT through connected homes. According to Omid Tahernia, Chief Executive Officer of Ikanos, it will also widen the scope to allow new carrier services and applications. Qualcomm Atheros’ plan is to grow into one of the major influences in IoT and Ikanos will help steer into that direction.

The focus will be on providing connectivity tools and processors that will tackle numerous different protocols. Of course, the quality and reliability of services are some of the focus points for the project to ensure perpetual success. Qualcomm Atheros has a long way to go in the IoT field. The competition is stiff but luckily it is in its early stages. This is probably the best time for the company to make a solid stand in the IoT industry.

Other players, like Amazon.com, Inc. (NASDAQ:AMZN), have already established a lead, especially with Echo. Some of the benefits that Qualcomm will reap from the new acquisition include gaining access to G.fast modem technology, chipsets, and the A/VDSL2. Additionally, a combination of resources from both firms is expected to boost the activities.

Ikanos deals with chipset technology, as well as acceleration tools for copper networks, LTE, fiber and Ethernet. The company also has software that allows it to keep track of VoIP and broadband services. The acquisition of Ikanos is also in line with Qualcomm’s continued efforts to boost its growth and long-term revenue by pushing its smartphone connectivity technologies into new emerging markets.

The deal for the acquisition is worth roughly $47 million in cash. The terms of the deal are expected to come to a conclusion by the end of the year. Some analysts speculate that the deal could result in the creation of an integrated chip. As for now, the future is uncertain, though it seems to be taking all the right turns.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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