Intel acquires Lantiq for connected home networking
Intel Corporation has signed a definitive agreement to acquire Lantiq, a leading supplier of broadband access and home networking technologies. The transaction is subject to customary closing conditions and regulatory approvals. The transaction is expected to close in approximately 90 days. Deal terms were not disclosed. Rumor has it that Intel has acquired smart home startup Lantiq for $280 million.
With the move, Intel becomes the latest tech giant to hop on the connected home bandwagon. Samsung has said its appliances will be connected to the Internet and tied together. Google owns Nest and everyone from Apple to Microsoft has some kind of connected home play.
Adding Internet connections to devices ranging from soccer balls to household and industrial machines, a trend dubbed the Internet of Things or M2M, has become a new battleground for Intel, Qualcomm and other technology companies.
Intel, based in Santa Clara, Calif., is best known for microprocessor chips that perform calculations in personal computers and server systems. But the company has sidelines in many other areas, including chips for devices called gateways that help connect consumers to the Internet over cable networks.
The acquisition comes as Intel, based in Santa Clara, Calif., has been working to grow past its core personal-computer market, which had faced decline for years, and into new areas around the Internet of Things, in which just about anything can be connected to the Web. Many of Intel’s Internet of Things deals last year centered on wearable technology, with the company teaming up with watchmaker Fossil and glasses-frame maker Luxottica to create new devices.
Intel estimates that 50 billion devices will be connected to the Internet of Things by 2020. Samsung, which bought SmartThings for $200 million last year, said that 100 percent of its products will be connected to the Internet of Things within five years.