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Aug. 3, 2021, 7:26 a.m. EDT

Marvell Technology to acquire Innovium in all-stock deal valued at $1.1 billion

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By Ciara Linnane

Marvell Technology Inc. /zigman2/quotes/200053236/composite MRVL +3.88% said Tuesday it has reached an agreement to acquire Innovium Inc., a provider of software for cloud and edge data centers, in an all-stock deal valued at $1.1 billion. The deal is expected to close by year-end and to add $150 million in incremental revenue in fiscal 2023. It's expected to be neutral to Marvell's adjusted per-share earnings in the first quarter after close and too boost it in the first full fiscal year after that. Marvell, which makes infrastructure semiconductor software, has a portfolio of Ethernet switch semiconductor solutions for the enterprise and carrier segment. "Innovium's TERALYNX(TM) switching architecture delivers the ultra-low latency, optimized power, high performance, and innovative telemetry that are critical in today's cloud-scale data centers," Marvell said in a statement. The deal will allow Marvell to "immediately participate in the fastest growing segment of the switch market with a cloud-optimized solution," said the statement. Marvell shares were slightly higher premarket and have gained 27% in the year to date, while the S&P 500 /zigman2/quotes/210599714/realtime SPX +1.84% has gained 16.8%.

/zigman2/quotes/200053236/composite
US : U.S.: Nasdaq
$ 88.74
+3.31 +3.88%
Volume: 3.25M
Dec. 7, 2021 10:06a
P/E Ratio
N/A
Dividend Yield
0.27%
Market Cap
$70.36 billion
Rev. per Employee
$555,974
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/zigman2/quotes/210599714/realtime
US : S&P US
4,676.10
+84.43 +1.84%
Volume: 409.74M
Dec. 7, 2021 10:06a
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