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Entropic Buys RF Magic

Entropic Communications, a San Diego semiconductor maker producing chips that deliver multimedia content to home entertainment networks, agreed to purchase RF Magic Inc., another chip maker based here.

Terms of the deal announced April 11 were not disclosed. “It’s a very natural fit for both of us,” said Patrick Henry, chief executive of Entropic who will become CEO of the combined entity. “We are both focused on delivering multimedia content into and around the home and have developed two exceptionally talented teams with core competencies not only in chip design but also in systems level design.”

Founded in 2001, Entropic has about 100 employees, including 85 in San Diego. RF Magic, founded in 2000, is just about the same total size, and with the same number of local employees, Henry said.

He declined to reveal financials. Entropic obtained $81 million in venture capital and corporate investments in three rounds. RF Magic received $43 million in venture and strategic investments, Henry said.

The overlap in jobs won’t be much, resulting in few layoffs. Both firms have openings, with Entropic seeking 10 to 15 people to fill jobs in areas such as engineering, operations, marketing, sales and finance.

The deal is expected to close in June, Henry said.

, Mike Allen

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