Qualcomm Corp. agreed to acquire chip maker Ikanos Communications Inc. in a deal worth an estimated $47 million.

Under the deal, Qualcomm's Atheros unit will acquire Ikanos, a provider of broadband semiconductor and software products for the home, for $2.75 per share in cash and assume the company's debt.

Ikanos' board of directors has unanimously approved the deal, which is expected to close before the end of this year, Qualcomm said.

The move comes as Qualcomm recently reported a nearly 50% drop in quarterly profit and is facing pressure from an activist investor.

The addition of Ikanos modem technology would be a welcomed addition to Qualcomm's strategy for the connected home, said Rahul Patel, general manager of connectivity for Qualcomm.

Last month, San Diego-based Qualcomm reduced its forecast for the current quarter, signaling continued sales weakness, and lowered its 2015 volume outlook.

Amid those results, Qualcomm said it would slash spending by $1.4 billion and consider restructuring operations, including a splitting apart. The cuts include paring 15% of its full-time employees and "significantly" cutting its temporary staff.

In April, activist Jana Partners LLC disclosed it had bought a stake in the company worth more than $2 billion. Jana said it would ask Qualcomm to consider a range of possibilities to boost its share price, including a breakup.

By: DocMemory
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