Intel has agreed to buy Lantiq, a German chip maker, for an undisclosed amount as the chip giant looks to expand its presence in the Internet of Things (IoT) market.
Lantiq, founded in 2009, makes chips and software used for fibre, broadband and Wi-Fi communications, which is supplied by broadband access and telecom providers.
The deal is expected to help Intel expand its presence in the cable residential gateway market as well as other gateway markets, including LTE, retail and IoT smart routers.
Kirk Skaugen, Intel’s Client Computing Group SVP and general manager, says he expects more than 800 million broadband connected homes around the world by 2018.
"The combination of our cable gateway business with Lantiq’s technology and talent can allow global service providers to introduce new home computing experiences and enable consumers to take advantage of a more smart and connected home," he said.
Lantiq CEO Dan Artusi added: "Intel and Lantiq share a common vision about the evolution of the connected home and the intelligent network."
"Together we can drive the transformation of the broadband customer premises equipment (CPE) as it becomes a smart gateway that connects an increasingly diverse roster of devices and services in the home."
The transaction is expected to close in 90 days.