Marvell to acquire Innovium for $1.1B

SaaS News - Marvell to acquire Innovium for $1.1B (source: SaaS Industry)
At a Glance

Marvell and Innovium have reached a deal under which Marvell will buy Innovium for $1.1B. With Innovium’s TERALYNXTM platform, Marvell will be able to devote more engineering resources to cloud-optimized silicon.

Marvell Technology Inc., an infrastructure semiconductor solutions provider, and Innovium Inc., a provider of networking solutions for cloud and edge data centers, announced that they had entered a definitive agreement. As per the agreement, Marvell will acquire Innovium in an all-stock deal amounting to $1.1 billion.   

The acquisition of Innovium will allow Marvell to devote more engineering resources to cloud-optimized silicon via Innovium’s TERALYNX platform as the 9K product family while maintaining its PresteraTM 2K to 8K product families for the enterprise and carrier switch markets. Marvell’s continued development in the 5G, cloud, corporate, and automotive end markets, which all use Marvell’s Ethernet platform, will be aided by dedicated architectures.

TERALYNX’s switching architecture provides ultra-low latency, efficient power, high performance, and unique telemetry for today’s cloud-scale data centers. In the merchant cloud semiconductor switching industry, the firm has gradually developed to become a strong provider. Marvell’s acquisition of Innovium will allow it to enter the fastest-growing area of the switch market with a cloud-optimized solution right away.

Puneet Agarwal, the Chief Technology Officer and co-founder of Innovium will join Marvell when the deal is completed. He has more than 20 years of expertise in designing and architecting breakthrough solutions. He’ll be joined by the excellent team from Innovium, which will continue to lead the merged company’s cloud-optimized switch program. Rajiv Khemani, CEO of Innovium, will act as an advisor to Marvell after completing the deal.

Our acquisition of Innovium and its complementary offerings further extends Marvell’s leadership in the cloud, and I am excited that Innovium has secured significant share as a marquee cloud customer. Innovium has established itself as a strong cloud data center merchant switch silicon provider with a proven platform, and we look forward to working with their talented team who have a strong track record in the industry for delivering multiple generations of highly successful products.

Matt Murphy, president and CEO of Marvell

Marvell offers a large portfolio of Ethernet switch semiconductor solutions. It has a strong and increasing presence in the enterprise and carrier markets, which it serves a diverse range of feature-rich devices. Given Marvell’s rising clout in the cloud data center industry, which was bolstered by the recent acquisition of Inphi, creating specialized high-radix, performance-optimized switch silicon for hyper-scale data centers is becoming increasingly crucial.

The purchase of Innovium is expected to result in an additional $150 million in revenue for Marvell next fiscal year. Marvell’s non-GAAP earnings per share are projected to be neutral in the first full quarter after the acquisition closes, then accretive in the first full fiscal year following that.

The Innovium vision is centered on delivering breakthrough switch silicon and choice for next-generation cloud and edge data centers. Bringing technology leadership and customer-focused innovation to the market is what drives our team every day.

Rajiv Khemani, CEO of Innovium

I want to recognize and thank our valued employees for their passion, commitment, and outstanding execution. We are excited to join Marvell and accelerate the growth of our business, partnerships, and solution value while contributing to the company’s fast-growing cloud opportunity.

Rajiv Khemani, CEO of Innovium
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