Infineon to buy Marvell’s automotive ethernet business in $2.5bn deal

German semiconductor shaper Infineon Technologies has agreed to get the automotive ethernet concern of US-based Marvell Technology successful an all-cash woody valued astatine $2.5bn (€2.27bn).

The transaction, which includes Marvell's Brightlane Automotive Ethernet merchandise enactment and associated assets, has received support from Marvell's committee of directors.

Subject to receipt of customary closing conditions and regulatory approvals, the woody is anticipated to reason wrong the 2025 calendar year.

According to Infineon, the automotive ethernet concern presently supplies much than 50 automobile manufacturers.

This concern is projected to make gross betwixt $225m and $250m successful fiscal twelvemonth 2026, the institution added.

Following the woody closing, the concern volition beryllium integrated into Infineon’s automotive division.

Ethernet exertion is considered indispensable for enabling high-speed, low-latency information connection successful software-defined vehicles.

Infineon expects the woody to enactment its beingness successful adjacent sectors specified arsenic humanoid robotics and heighten its probe and improvement footprint successful the US.

Infineon CEO Jochen Hanebeck said: “The acquisition is simply a large strategical acceptable for Infineon arsenic the planetary fig 1 supplier of semiconductor solutions to the automotive industry.

“We volition leverage this highly complementary Ethernet exertion by combining it with our existing, wide merchandise portfolio to supply our customers with adjacent much comprehensive, starring solutions for software-defined vehicles.

“The transaction volition enactment our profitable maturation strategy going forward, including caller opportunities successful the tract of carnal AI specified arsenic humanoid robots.”

To concern the transaction, Infineon volition gully connected existing liquidity and further debt, supported by secured acquisition financing from banks.

Marvell has been progressively focused connected its information centre spot business, which reported a 78% year-on-year maturation successful the 4th quarter, Bloomberg reported.

Over the aforesaid period, the company’s automotive and concern conception grew by 4.1%.

Marvell plans to sermon the transaction during its first-quarter net telephone connected 29 May 2025.

"Infineon to bargain Marvell’s automotive ethernet concern successful $2.5bn deal" was primitively created and published by Verdict, a GlobalData owned brand.

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