Editorial Contact
Investor Relations Contact:
Gwen Carlson
Scott Allen
Conexant Systems, Inc.
Conexant Systems, Inc.
(949) 483-7363
(949) 483-2698
CONEXANT TO SELL BROADBAND ACCESS PRODUCT LINES TO IKANOS
Transaction Expected to Close in Fourth Fiscal Quarter; Focus for Continuing Company Will
Include Imaging, Audio, Video, and Embedded Modems
NEWPORT BEACH, Calif., April 22, 2009 – Conexant Systems, Inc. (NASDAQ:
CNXT) today announced that it has signed a definitive agreement to sell its Broadband
Access product lines to Ikanos Communications, Inc. (NASDAQ: IKAN) for $54 million in
cash. Conexant’s Broadband Access business provides solutions for DSL, ADSL, VDSL,
SHDSL, and PON applications. The transaction, which is subject to customary closing
conditions and regulatory approvals as well as approval by Ikanos shareholders, is expected to
close in the fourth fiscal quarter.
“Over the past decade, Conexant’s Broadband Access team has developed and
delivered an outstanding portfolio of solutions for DSL applications and maintained a leading
position in an extremely competitive market,” said Scott Mercer, Conexant’s chairman and
chief executive officer. “The combination of Conexant’s and Ikanos’s DSL assets will create
a company with the focus, resources, and customer base required to achieve continued success
for the foreseeable future.
“The divestiture of our Broadband Access business represents another major step in
our efforts to restructure our operations,” Mercer said. “When the transaction is completed
this summer, the continuing Conexant will be focused exclusively on providing solutions for
imaging, audio, video, and various embedded-modem applications. We occupy leading
positions in each of these areas, which are expected to grow over the next several years.
“We expect the continuing Conexant to deliver improved financial performance,”
Mercer said. “Proceeds from the transaction will provide us with