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03 Aug, 2021 13:34

Marvell Technology to buy chip start-up Innovium in $1.1bn deal

Marvell Technology has agreed to buy chip start-up Innovium for $1.1bn in an all-stock deal.

Marvell said Innovium’s cloud-optimised switches will complement its extensive Ethernet offerings and broaden the company’s portfolio of silicon solutions targeting cloud data centres. The acquisition is expected to add $150m in incremental revenue in fiscal 2023,.

The deal is expected to be neutral to Marvell’s non-GAAP earnings per share in the first full quarter after the transaction closes, and accretive in the first full fiscal year thereafter.

Marvell president and chief executive Matt Murphy said: "Our acquisition of Innovium and its complementary offerings further extends Marvell’s leadership in the cloud, and I am excited that Innovium has secured significant share at a marquee cloud customer.

"Innovium has established itself as a strong cloud data centre merchant switch silicon provider with a proven platform, and we look forward to working with their talented team who have a strong track record in the industry for delivering multiple generations of highly successful products."


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Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news articles and we may not share the views of the author or publisher.

We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.