Marvell Tech to acquire Innovium for $1.1 bln as it courts more cloud customers

Marvell Tech to acquire Innovium for $1.1 bln as it courts more cloud customers. Marvell Technology Inc (MRVL.O) on Tuesday said it has agreed to acquire chip startup Innovium in a $1.1 billion all-stock deal aimed at bolstering Marvell’s share of networking chips sold to large cloud-computing companies.

Marvell’s rival, Broadcom Inc (AVGO.O), currently dominates the market for chips that go into the switches that help move digital information around inside massive data centers owned by cloud players like Amazon Web Services (AMZN.O), Microsoft Corp (MSFT.O) and others. Marvell took a step toward getting into that market last year with its $10 billion purchase of Inphi Corp, whose chips help connect the switches with fiber optic cables.

https://www.deviantart.com/boxingtvhq/journal/Watch-Michael-Hunter-vs-Mike-Wilson-Live-On-Reddit-887682564

https://www.deviantart.com/boxingtvhq/journal/Crackstreams-Hunter-vs-Wilson-Live-Stream-Free-HD-887682634

https://www.deviantart.com/boxingtvhq/journal/Boxing-Watch-Wilson-vs-Hunter-Live-Stream-Reddit-887682814

https://www.deviantart.com/boxingtvhq/journal/Boxing-On-Reddit-Watch-Hunter-vs-Wilson-Live-Free-887682869

 

https://www.deviantart.com/boxingtvhq/journal/FightCard-Mike-Wilson-vs-Michael-Hunter-Live-Free-887682926

https://www.deviantart.com/boxingtvhq/journal/Boxing-On-PPV-Wilson-vs-Hunter-Live-Stream-Reddit-887682975

https://www.deviantart.com/boxingtvhq/journal/Boxing-Watch-Hunter-vs-Wilson-Live-FREE-ON-FITE-TV-887683059

https://www.deviantart.com/boxingtvhq/journal/How-to-Watch-Michael-Hunter-vs-Wilson-Live-Online-887683111

https://www.deviantart.com/boxingtvhq/journal/Boxing-Reddit-Streams-Watch-Hunter-vs-Wilson-Live-887683153

https://www.deviantart.com/boxingtvhq/journal/Boxing-DAZN-Watch-Wilson-vs-Hunter-Live-Streaming-887683190

Innovium’s chip, by contrast, sits at the heart of the switches and competes directly against Broadcom. In an interview with Reuters, Marvell Chief Executive Matt Murphy said the company’s long-term plan is to integrate the Innovium and Inphi products to deepen its ties with cloud computing vendors, which are some of the largest spenders in the world on chips.

Microsoft, for example, had $24.2 billion in capital expenditures last year, much of it spent on data centers.

“If you just look at all the semiconductor end markets and where the biggest growth is going to come from over the next five to 10 years across the whole chip industry, it’s just breathtaking if you look at the capital expenditure commitments these companies are making,” Murphy said.

Privately held Innovium is expected to generate $150 million in revenue in its next fiscal year. Under the terms of the deal, Marvell will pay $1.1 billion in stock but take on $145 million in cash from Innovium’s balance sheet, resulting in a net cost to Marvell of $955 million.

Marvell also said it expects revenue of $1.065 billion, plus or minus 1.5%, when it reports earnings on Aug. 26, in line with analyst estimates, according to IBES data from Refinitiv.

Marvell Technology Group Ltd on Tuesday rolled out a set of semiconductors aimed at a new wave of 5G networking gear designed to let telecommunications carriers mix and match equipment more easily.

In the past, mobile network equipment from makers such as Nokia, Ericsson and Huawei Technologies Co Ltd was largely proprietary, made up of custom chips and software and difficult to intermix.

But U.S. government restrictions that have crippled Huawei’s ability to source chips have sped the adoption of so-called open radio-access network technology, where any vendor can assemble industry-standard chips and software to create inter-operable 5G networking gear.

Japan’s Rakuten Inc and U.S.-based DISH Network Corp are both rolling out networks based on such gear, and chipmakers such as Qualcomm Inc and Intel Corp have announced chips for the segment, although Qualcomm’s offerings remain years away.

Marvell, for its part, has long been a supplier of chips for traditional networking gear makers such as Nokia and Samsung Electronics Co Ltd.

On Tuesday, the company released a series of chips designed for the newer style of open networks. In an interview, Raj Singh, executive vice president of Marvell’s processor business group, said those players are beginning to use the new technology.

A woman looks at her mobile phone next to a 5G sign at the Mobile World Congress in Barcelona, Spain, February 25, 2019. REUTERS/Sergio Perez/File Photo

(Reuters) – Marvell Technology Group Ltd on Tuesday rolled out a set of semiconductors aimed at a new wave of 5G networking gear designed to let telecommunications carriers mix and match equipment more easily.

In the past, mobile network equipment from makers such as Nokia, Ericsson and Huawei Technologies Co Ltd was largely proprietary, made up of custom chips and software and difficult to intermix.

But U.S. government restrictions that have crippled Huawei’s ability to source chips have sped the adoption of so-called open radio-access network technology, where any vendor can assemble industry-standard chips and software to create inter-operable 5G networking gear.

Advertisement

Japan’s Rakuten Inc and U.S.-based DISH Network Corp are both rolling out networks based on such gear, and chipmakers such as Qualcomm Inc and Intel Corp have announced chips for the segment, although Qualcomm’s offerings remain years away.

Marvell, for its part, has long been a supplier of chips for traditional networking gear makers such as Nokia and Samsung Electronics Co Ltd.

On Tuesday, the company released a series of chips designed for the newer style of open networks. In an interview, Raj Singh, executive vice president of Marvell’s processor business group, said those players are beginning to use the new technology.

“We’re getting support from our existing customers, as well as the new upstarts,” Singh said.

Even though Marvell is a chip company, it has also developed software and even metalwork designs to provide a blueprint to make functional networking gear. John Schimpf, senior director of Marvell’s wireless group, said the goal was to give potential new entrants to the market “a starting point that is viable.

Leave a Reply

Your email address will not be published. Required fields are marked *