Market Overview

Marvell Buys Aquantia In $450M Deal

Share:
Marvell Buys Aquantia In $450M Deal

Semiconductor company Marvell Technology Group Ltd. (NASDAQ: MRVL) said Monday it reached an agreement to buy Aquantia Corp (NYSE: AQ), a leader in Multi-Gig Ethernet connectivity, for $13.25 per share.

What Happened

Marvell's acquisition of Aquantia will complement its portfolio of copper and optical physical layer product offerings and extend its position in the Multi-Gig 2.5G/5G/10G Ethernet segments, the companies said in a press release. The combination of Quantia's innovative Multi-gig automotive PHYs with Marvell's gigabit PHY and secure switch products will create the "broadest and most advanced range of high-speed in-car networking solutions in the world."

Why It's Important

Ethernet in-vehicle networks for mainstream adoption is expected to grow at a 62 percent annualized growth rate from 53 million in 2018 to 367 million by 2022, the companies said.

"Marvell and Aquantia share a vision where the network – whether in an autonomous vehicle, an enterprise application or in cloud infrastructure – can seamlessly power the data economy," said Faraj Aalaei, chairman and CEO of Aquantia. "This is a fantastic opportunity as our customers will benefit from Marvell's global scale and expanding footprint in Multi-Gig network applications."

What's Next

Marvell's acquisition is expected to be immediately accretive to non-GAAP earnings per share and create $40 million in annual run-rate synergies within one year of the transaction closing.

Shares of Aquantia were higher by 36 percent at $13.08 following the announcement.

Related Links:

26 Stocks Moving In Monday's Pre-Market Session

A Look At Some Bearish Options Activity In Marvell Technology

Posted-In: Connected Auto Faraj Aalaei semiconductorM&A News Best of Benzinga

 

Related Articles (MRVL + AQ)

View Comments and Join the Discussion!
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

This Day In Market History: English Channel Tunnel Connects France To England

Q1 Earnings Outlook For Fiesta Restaurant Group