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© Marvell Semiconductor Electronics Production | August 04, 2021

Marvell to acquire Innovium - expands ethernet switching portfolio

Marvell Technology has entered into a definitive agreement under which it will acquire Innovium in an all-stock transaction. Innovium shareholders will receive USD 1.1 billion in consideration consisting of about 19.05 million shares of Marvell Common Stock.

Innovium’s cloud-optimised switches will complement Marvell’s ethernet offerings and the acquisition will also broaden Marvell’s portfolio of silicon solutions targeting cloud data centers. The deal is expected to add USD 150 million in incremental revenue in fiscal 2023, a press release reads. Marvell already has an extensive portfolio of Ethernet switch semiconductor solutions with a strong and growing position in the enterprise and carrier segments it services. However, the planned acquisition of Innovium allows Marvell to immediately participate in the fastest growing segment of the switch market with a cloud-optimised solution. Going forward, Innovium has been selected to become a significant supplier at a Tier 1 cloud customer, and this is expected to drive a significant revenue ramp in calendar 2022. In addition, Innovium is currently engaged with several other leading cloud data center customers in building out their future network architectures. By calendar 2026, the data center market for merchant Ethernet switch silicon is estimated to grow to approximately USD 2 billion at a 15% CAGR.¨ Innovium Chief Technology Officer and Founder Puneet Agarwal, who has more than 20 years of experience in defining and architecting groundbreaking products, will join Marvell after close of the transaction. He will be joined by the talented team from Innovium who will continue to drive the cloud-optimised switch program within the combined company. Innovium CEO Rajiv Khemani will serve as an advisor to Marvell post close. “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,” says Matt Murphy, President and CEO of Marvell in the press release. “Innovium has established itself as a strong cloud data center 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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September 24 2021 9:40 am V18.23.0-2