From Yahoo Finance: 2025-04-08 05:10:00

German semiconductor company Infineon Technologies has agreed to purchase Marvell Technology’s automotive ethernet business for $2.5bn in cash. This deal includes Marvell’s Brightlane Automotive Ethernet product line and assets, expected to generate $225m-$250m in revenue in fiscal year 2026. The transaction is set to close in 2025 pending regulatory approvals.

Infineon plans to integrate the acquired business into its automotive division to enhance its presence in sectors like humanoid robotics. The deal will enable Infineon to offer comprehensive solutions for software-defined vehicles, leveraging Ethernet technology for high-speed data communication. CEO Jochen Hanebeck sees the acquisition as a strategic fit and a step towards profitable growth.

To finance the acquisition, Infineon will use existing liquidity and additional debt, with secured financing from banks. Marvell, focusing on its data center chip business, experienced 78% year-on-year growth in the fourth quarter, while its automotive and industrial segment grew by 4.1%. Marvell will discuss the transaction during its first-quarter earnings call on 29 May 2025.

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