Semiconductor company Marvell Technology Group Ltd. MRVL said Monday it reached an agreement to buy Aquantia Corp AQ, a leader in Multi-Gig Ethernet connectivity, for $13.25 per share.
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."
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.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.