Intel Buys Texas Instruments' Cable Modem Business

In a further sign of how far the convergence of PCs and TVs has truly gone, Intel is acquiring Texas Instruments' cable modem business, the chipmaker announced Monday. Intel (INTC) plans to take its Atom-based system-on-chip (SoC) products and meld them with Texas Instruments' (TXN) Puma technology for use in set-top boxes, residential gateways and cable modems.

"Intel is focused on delivering SoCs that provide the foundation for consumer electronic devices such as set-top boxes, digital TVs, Blu-ray disc players, companion boxes and related devices," Bob Ferreira, Intel Digital Home Group cable segment general manager, said in a statement.

Terms of the deal were not disclosed. The transaction is expected to close in the fourth quarter.