Marvell buys Innovium for $1.1 billion
The deal is an all-stock acquisition and includes Innovium cash and other proceeds expected at closing to be approximately $145 million, resulting in a net cost to Marvell of $955 million.
The move by Marvell comes after its $8 billion purchase of Inphi Corp. (see China approves Marvell acquisition of Inphi).
The acquisition of Innovium’s cloud-optimized switches are complementary to Marvell’s Ethernet offerings, Marvell said. Marvell has an extensive portfolio of Ethernet switching ICs while Innovium’s Teralynx switching architecture is being deployed in data centers.
Innovium has just been selected to be a significant supplier at an unnamed cloud customer, which is expected to ramp revenue in 2022. Marvell expects the acquisition of Innovium will enable the addition of approximately $150 million in incremental revenue next fiscal year.
Innovium CTO and founder Puneet Agarwal, will join Marvell after close of the transaction.
The board of directors of both companies have approved the transaction. The transaction is expected to close by the end of calendar 2021, subject to the satisfaction of customary closing conditions, including approval by Innovium’s shareholders and applicable regulatory approvals.
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