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Marvell to Sell Automotive Ethernet Business to Infineon for $2.5 Billion in Cash
Prnewswire· 2025-04-07 20:35
Core Viewpoint - Marvell Technology, Inc. has agreed to sell its Automotive Ethernet business to Infineon Technologies AG for $2.5 billion, which is expected to generate revenue of $225-250 million in fiscal 2026, marking a strategic move to enhance shareholder value [1][2]. Group 1: Acquisition Details - The acquisition of Marvell's Automotive Ethernet business is valued at $2.5 billion and includes the Brightlane® Automotive Ethernet portfolio and related assets [1]. - The transaction has been approved by Marvell's Board of Directors and is anticipated to close within the calendar year 2025, pending customary closing conditions and regulatory approvals [1]. Group 2: Financial Performance - Marvell's data center end market accounted for 75% of consolidated revenue in the fiscal fourth quarter of 2025, highlighting the company's strong position in data infrastructure solutions [2]. - The Automotive Ethernet business is projected to generate revenue between $225 million and $250 million in fiscal 2026, indicating its growth potential [1]. Group 3: Strategic Positioning - Marvell's CEO expressed confidence that the transaction provides the strongest financial return for shareholders, emphasizing the compelling valuation of the Automotive Ethernet business [2]. - The acquisition is expected to position the Automotive Ethernet business for continued growth and success under Infineon's optimized platform for automotive applications [2].