Marvell will pay an additional $90 million contigent on certain performance goals are met within 15 months.
Avera was set up by Globalfoundries as wholly-owned chip design subsidiary in November 2018 after the foundry had opted to drop 7nm FinFET development and focus manufacturing processes behind the leading edge.
Avera was thus freed up to produce ASICs for customers using 7nm process technology from outside Globalfoundries.
In announcing the deal Marvell said the acquisition would bring world-class ASIC IP for wired and wireless communications, from a deep IBM heritage, and extend Marvell’s reach into 5G basestations while bringing a substantial revenue stream.
The deal brings design wins with leading infrastructure OEMs, and a long-term wafer supply agreement between Globalfoundries and Marvell.
Previously part of IBM’s microelectronics business, Avera has executed more than 2,000 complex designs in its 25-year history and employs 800 engineers. Competences include analog, mixed-signal and SoCs, SerDes, embedded memory and advanced packaging technology. Avera is also working on next generation cloud data centers.
The transaction is expected to close by the end of Marvell’s fiscal year 2020 pending receipt of regulatory approvals and other customary closing conditions.
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