Skip to main content

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

 

Related Articles (MRVL + AQ)

View Comments and Join the Discussion!

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

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.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
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