Marvell Technology has agreed to acquire Innovium in an all-stock transaction worth USD 1.1 billion. The deal is expected to strengthen Marvell's portfolio of Ethernet switch semiconductor products for the enterprise and carrier segments. Innovium's Teralynx switching architecture delivers the ultra-low latency, optimised power, high performance, and innovative telemetry that are critical in today's cloud-scale data centres, the company said.
Innovium has steadily grown to become a strong supplier in the merchant cloud semiconductor switching market. The planned acquisition allows Marvell to immediately participate in the fastest growing segment of the switch market with a cloud-optimised platform.
Going forward, Innovium was 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 engaged with several other large cloud data centre customers in building out their future network architectures.
The addition of Innovium will provide Marvell with incremental engineering resources to focus on cloud optimised silicon through the Teralynx platform as the 9K product family, while continuing to drive its Prestera 2K to 8K product families for the enterprise and carrier switch market. Dedicated architectures will accelerate Marvell's ongoing growth in the 5G, cloud, enterprise, and automotive end markets, which all leverage Marvell's Ethernet platform.
Marvell expects the acquisition of Innovium will enable the addition of approximately USD 150 million in incremental revenue next fiscal year. The acquisition is expected to close by the end of calendar 2021, pending Innovium shareholder approval and regulatory clearance.
Innovium CTO 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 programme within the combined company. Innovium CEO Rajiv Khemani will serve as an advisor to Marvell post close.
