UPDATE 1-Ikanos to buy Conexant broadband access product line

* Conexant to sell product line for $54 mln in cash

* Investment firm to buy 24 mln Ikanos shares for $42 mln

* About 400 Conexant employees to join Ikanos

April 22 (Reuters) - Communications and network chip maker Conexant Systems Inc (CNXT.O) agreed to sell its broadband access product line to Ikanos Communications Inc (IKAN.O) for $54 million in cash.

Conexant's broadband access product line is expected to strengthen Ikanos' market position in North America and China. Ikanos develops chips and software products that enable network equipment makers and service providers to provide broadband.

The acquisition will allow Ikanos to double its revenue and add to its earnings within the first year after the deal closes, Ikanos said in a statement.

The transaction is expected to close in the third quarter, it said.

In connection with the transaction, Tallwood Venture Capital, an investment firm focused on the semiconductor industry, agreed to buy 24 million of Ikanos common shares for $42 million, or $1.75 a share.

Tallwood will also receive warrants to purchase an additional 7.8 million common shares at $1.75 a share.