Marvell Technology to buy chip start-up Innovium in $1.1bn deal

Marvell Technology has agreed to buy chip start-up Innovium for $1.1bn in an all-stock deal.

Marvell said Innovium’s cloud-optimised switches will complement its extensive Ethernet offerings and broaden the company’s portfolio of silicon solutions targeting cloud data centres. The acquisition is expected to add $150m in incremental revenue in fiscal 2023,.

The deal is expected to be neutral to Marvell’s non-GAAP earnings per share in the first full quarter after the transaction closes, and accretive in the first full fiscal year thereafter.

Marvell president and chief executive Matt Murphy said: "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 at a marquee cloud customer.

"Innovium has established itself as a strong cloud data centre 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."