Chip maker Ikanos scores $42M from Tallwood
Ikanos Communications, a maker of broadband chips, says it brought in $42 million from Tallwood Capital, a firm that specializes in early-stage chip enterprises. The money will go toward a $54 million product acquisition from competitor Conexant Systems, reports VentureWire.
Because Ikanos is a public company, this round of funding is categorized as a private investment in public equity (PIPE) — something that has become fairly popular as valuations decline. Close to $1.5 billion in investments went into PIPE deals in the first quarter alone.
The deal between Ikanos and Tallwood will give the latter a 45 percent stake in the Fremont, Calif. company. It’s expected to be finalized by the end of the third quarter.
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About the Author, Camille Ricketts
Camille is the lead writer for GreenBeat. She came to VentureBeat from Google where she worked on its traditional platforms team, particularly in TV. Before that, she was a reporter for the Wall Street Journal in New York and London. Follow her on Twitter at @camillericketts, and follow VentureBeat on Twitter at @venturebeat.
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