Sunday, November, 27, 2022 08:16:08
Marvell reaches definitive agreement for acquisition of Aquantia
Marvell and Aquantia both believe in the concept that network can effortlessly power the data economy.
Semiconductor manufacturing giant Marvell Technology and Aquantia, the ethernet connectivity company, recently announced that the companies have reached an agreement in which Marvell will acquire Aquantia for $452 million.
The definitive agreement dictates the terms under which Marvell will pay stockholders of Aquantia $13.25 per share in cash. The deal has been approved by the boards of both companies.
According to experts, Marvell's acquisition of Aquantia complements its portfolio that consists of optical physical layer and copper product offerings besides strengthening its position in Multi-Gig Ethernet segments. The amalgamation of secure switch and gigabit PHY products developed by Marvell and multi-gig automotive PHYs developed by Aquantia is anticipated to create most advanced high-speed in-car range of networking solutions in the world.
As the automotive industry is rapidly adopting Ethernet in-vehicle networks for vehicle models, this acquisition is expected to accelerate the vision that Marvell holds for the future of automotive networking that can enable level 4 and 5 autonomous driving.
Matt Murphy, Marvell President and CEO has been reported to say that the Marvell's acquisition of Aquantia will help to drive the leadership role that Marvell currently holds in transforming in-car network to high-speed Ethernet over the upcoming 10 years. The acquisition also extends Marvell's reach in the Multi-Gig network infrastructure that is a rapidly emerging segment and helps to create a portfolio that can be a leader in end-to-end Ethernet connectivity.
Chairman and CEO of Aquantia, Faraj Aalaei reportedly commented on the acquisition and said that Marvell and Aquantia both believe in the concept that network can effortlessly power the data economy. He added that the acquisition presents a fantastic opportunity as Aquantia’s customers as they stand to benefit from Marvell's expansion in to the Multi-Gig network application segment and the company’s global scale.
While the acquisition caused Aquantia’s share prices to surge by 36%, the share prices of Marvell along with the rest of the semiconductor sector recorded a decline.
Source Credit: https://www.thestreet.com/investing/earnings/marvell-technology-to-purchase-aquantia-14949381