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Atheros agreed to buy Intellon in September 2009 for an announced value of about $244 million, adding powerline networking to its Wi-Fi and Ethernet business. The transaction closed on December 15, 2009, after Intellon shareholders approved it. The headline valuation and the cash and stock delivered at closing are different measures.
Why did Atheros buy Intellon?
Atheros built wireless LAN and Ethernet connectivity products; Intellon specialized in powerline communications (PLC), which carries network data over electrical wiring. Combining those technologies gave Atheros a broader set of options for connecting devices in the digital home, while also extending into broadband access and smart-grid applications. Atheros described the rationale as pairing PLC with Wi-Fi for home networking and adding connectivity for low-power infrastructure. Atheros and Intellon’s September 8, 2009 announcement set out that strategic case.
Intellon’s products addressed home powerline networking and networked entertainment as well as broadband-over-powerline access, Ethernet-over-Coax and smart-grid management. In a December 2009 shareholder filing, Intellon reported cumulative sales of more than 35 million HomePlug-based integrated circuits and called itself the HomePlug IC market-share leader. Atheros’s completion announcement describes the application areas; Intellon’s shareholder-approval announcement gives its sales figure and market position.
How much did Atheros pay?
The September 8 agreement was announced at approximately $244 million. That figure was approximately $181 million net of Intellon’s cash, cash equivalents and short-term investments as of June 30, 2009. The net figure subtracts those assets from the headline valuation; it is not a separate cash payment. The announcement identifies both valuations.
#1 Best Overall
- 𝐄𝐱𝐭𝐞𝐧𝐝 𝐘𝐨𝐮𝐫 𝐄𝐭𝐡𝐞𝐫𝐧𝐞𝐭 𝐂𝐨𝐧𝐧𝐞𝐜𝐭𝐢𝐨𝐧 𝐓𝐡𝐫𝐨𝐮𝐠𝐡 𝐘𝐨𝐮𝐫 𝐄𝐥𝐞𝐜𝐭𝐫𝐢𝐜𝐚𝐥 𝐒𝐲𝐬𝐭𝐞𝐦 - This device is meant for for areas where thick walls block Ethernet connections, where routers or range extenders do not work. Compatible with all TP-Link powerline adapters.
- 𝐀𝐕𝟏𝟎𝟎𝟎 𝐒𝐩𝐞𝐞𝐝𝐬 𝐔𝐩 𝐭𝐨 𝟕𝟓𝟎 𝐅𝐞𝐞𝐭 - Powered by HomePlug AV2, delivers AV1000 powerline speeds through existing electrical wiring. Speeds cannot exceed your internet plan's limit and may be lower due to wiring quality, distance, and interference.
- Ideal for multi-story homes, basements, attics, and garages.
- 𝐂𝐡𝐞𝐜𝐤 𝐛𝐞𝐟𝐨𝐫𝐞 𝐲𝐨𝐮 𝐛𝐮𝐲 - Adapters must be plugged directly into wall outlets on the same electrical circuit. Does not work with power strips, surge protectors, or extension cords. Place away from large appliances, such as washing machines, refrigerators, and air conditioners.
- 𝐀𝐝𝐯𝐢𝐬𝐨𝐫𝐲 - Performance may be limited or blocked in homes with AFCI breakers, which are standard in many homes built after 2000. Powerline may also not work with routers or gateways using modified, open-source (e.g., DD-WRT), or non-standard firmware.
The merger agreement valued Intellon at $7.30 per share, based on Atheros’s average closing share price over the five trading days through September 4, 2009. Consideration was structured so that 45% to 55% would be Atheros stock or equivalents, with the balance paid in cash. Because part of the payment was equity, the final share count depended on the deal’s closing mechanics rather than being represented by the $244 million headline alone. The merger agreement filed with the SEC sets out the per-share value and mix.
How did shareholders approve the acquisition?
At a special meeting on December 11, 2009, Intellon stockholders approved the merger. More than 77% of shares outstanding supported it, as did more than 99% of the shares that voted. The distinction matters: the first percentage uses all outstanding shares as its base, while the second counts only votes cast. Intellon’s approval announcement reports both results.
Rank #2
- EXTEND YOUR ETHERNET CONNECTION THROUGH YOUR ELECTRICAL SYSTEM - This device is meant for individuals that are not able to extend their Ethernet connections where routers or range extenders do not work. Speed cannot exceed your internet plan’s limit.
- HOMEPLUG AV2 - Delivers AV2000 powerline speeds over existing electrical wiring, extending home network wired connectivity by up to 750ft through thick walls and other barriers. Ideal for multi-story homes, basements, attics, and garages.
- CHECK BEFORE YOU BUY - Adapters must be plugged directly into wall outlets on the same electrical circuit. Does not work with power strips, surge protectors, or extension cords. Place away from large appliances, such as washing machines, refrigerators, and air conditioners.
- ADVISORY - Performance may be limited or blocked in homes with AFCI breakers, which are standard in many homes built after 2000. Powerline may also not work with routers or gateways using modified, open-source (e.g., DD-WRT), or non-standard firmware.
- 2 GIGABIT PORTS - Provides a secure wired network for connected devices, such as desktops, smart TVs, game consoles, and more. Ethernet cables are included. Tip: Expand connections with an Ethernet switch (sold separately).
When did the merger close, and what happened to Intellon stock?
Atheros completed the acquisition on December 15, 2009. Its completion announcement reported approximately $113.6 million in cash paid and 5,039,561 Atheros shares issued, including shares associated with assumed options and restricted stock units. The closing filing separately reported 4,215,904 Atheros shares to which holders of Intellon common stock were entitled at the effective time; that narrower count should not be confused with the broader total including assumed awards. Intellon shares ceased to be listed on Nasdaq after the merger. Atheros’s completion announcement and its closing filing provide the closing details.
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What the deal figures mean
| Figure | Meaning |
|---|---|
| About $244 million | Announced transaction value on September 8, 2009. |
| About $181 million | Announced value less Intellon cash, cash equivalents and short-term investments as of June 30, 2009. |
| $7.30 per share | Agreement’s per-share valuation, based on Atheros’s five-day average closing price through September 4, 2009. |
| About $113.6 million cash | Cash reported as paid at closing on December 15, 2009. |
| 4,215,904 Atheros shares | Shares the closing filing says were entitled to Intellon common-stock holders at the effective time. |
| 5,039,561 Atheros shares | Total reported by Atheros as issued including assumed options and restricted stock units. |
The $244 million announcement valuation should not be read as the cash Atheros paid at closing. The transaction used both cash and equity, and the closing disclosures report the actual consideration in those categories.
Quick Recap
Best Value
- Use your existing household electrical wiring to extend your existing Internet service to any room in your house..Standards: IEEE 1901 compliant. IEEE 802.3 compliant, this is not a Wi-Fi device
- Homeplug AV2 technology supports Gigabit speeds through your electrical outlets for improved coverage
- Extremely fast Powerline adapter for Gigabit speeds, perfect for connecting your existing internet access to smart TVs, streaming players & game consoles with 4K HD streaming and lag-free gaming through household electrical wiring, this is not a WiFI device
- Extra plug with our noise filtered power outlet built into the adapter to ensure top performance
- Multiple data streams (MIMO) with Beamforming technology to offer improved coverage by directing the signal where you need it through existing household electrical wiring, this is not a Wi-Fi device
Rank #4
- EXTEND YOUR ETHERNET CONNECTION THROUGH YOUR ELECTRICAL SYSTEM - This device is meant for areas where thick walls block Ethernet connections, where routers or range extenders do not work. Compatible with all TP-Link powerline adapters.
- AV600 SPEEDS UP TO 750 FEET - Delivers AV600 powerline speeds through existing electrical wiring. Speeds cannot exceed your internet plan's limit and may be lower due to wiring quality, distance, and interference.
- Ideal for multi-story homes, basements, attics, and garages.
- CHECK BEFORE YOU BUY - Adapters must be plugged directly into wall outlets on the same electrical circuit. Does not work with power strips, surge protectors, or extension cords. Place away from large appliances, such as washing machines, refrigerators, and air conditioners.
- ADVISORY - Performance may be limited or blocked in homes with AFCI breakers, which are standard in many homes built after 2000. Powerline may also not work with routers or gateways using modified, open-source (e.g., DD-WRT), or non-standard firmware.
Rank #3
- 𝐄𝐱𝐭𝐞𝐧𝐝 𝐘𝐨𝐮𝐫 𝐄𝐭𝐡𝐞𝐫𝐧𝐞𝐭 𝐂𝐨𝐧𝐧𝐞𝐜𝐭𝐢𝐨𝐧 𝐓𝐡𝐫𝐨𝐮𝐠𝐡 𝐘𝐨𝐮𝐫 𝐄𝐥𝐞𝐜𝐭𝐫𝐢𝐜𝐚𝐥 𝐒𝐲𝐬𝐭𝐞𝐦 - This device is meant for individuals that are not able to extend their Ethernet connections where routers or range extenders do not work. Speeds cannot exceed your internet plan’s limit.
- 𝐇𝐨𝐦𝐞𝐏𝐥𝐮𝐠 𝐀𝐕𝟐 - Delivers AV1000 powerline speeds over existing electrical wiring, extending home network wired connectivity through thick walls and other barriers. Ideal for multi-story homes, basements, attics, and garages.
- 𝐂𝐡𝐞𝐜𝐤 𝐛𝐞𝐟𝐨𝐫𝐞 𝐲𝐨𝐮 𝐛𝐮𝐲 - Adapters must be plugged directly into wall outlets on the same electrical circuit. Does not work with power strips, surge protectors, or extension cords. Place away from large appliances, such as washing machines, refrigerators, and air conditioners.
- 𝐀𝐝𝐯𝐢𝐬𝐨𝐫𝐲 - Performance may be limited or blocked in homes with AFCI breakers, which are standard in many homes built after 2000. Powerline may also not work with routers or gateways using modified, open-source (e.g., DD-WRT), or non-standard firmware.
- 𝐆𝐢𝐠𝐚𝐛𝐢𝐭 𝐏𝐨𝐫𝐭 - provides secure wired networks for desktops, smart TVs or games consoles. Ethernet cables are included.
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