Meet Marvell’s Newest Acquisition
Marvell Tech shares dipped on Monday after the company announced that it would acquire Aquantia.
Marvell Technology Group Ltd. (NASDAQ: MRVL | MRVL Price Prediction) shares dipped on Monday after the company announced that it would be acquiring Aquantia Corp. (NYSE: AQ).
Under the terms of the agreement, Marvell will be acquiring Aquantia for $13.25 per share in an all-cash agreement.
The acquisition of Aquantia complements Marvell’s portfolio of copper and optical physical layer product offerings and extends its position in the Multi-Gig 2.5G/5G/10G Ethernet segments in particular.
As the automotive industry increasingly adopts Ethernet in-vehicle networks for mainstream models, the number of related ports is expected to grow dramatically at a 62% annualized growth trajectory, from 53 million in 2018 to 367 million by 2022.
The transaction is expected to be immediately accretive to Marvell and generate significant annual run-rate synergies of $40 million to be realized within 12 months after the transaction closes.
Matt Murphy, president and CEO of Marvell, commented:
Our acquisition of Aquantia will fuel Marvell’s leadership in the transformation of the in-car network to high-speed Ethernet over the next decade. … At the same time, Aquantia extends our reach in the rapidly emerging Multi-Gig segment of network infrastructure and creates a leading end-to-end Ethernet connectivity portfolio.
Shares of Marvell were last seen down about 2% at $24.12, in a 52-week range of $14.34 to $25.74. The stock has a consensus price target of $25.41.
Aquantia was up about 36% at $12.99 per share. The 52-week range is $7.08 to $14.00, and the consensus price target is $12.33.
Contact [email protected] for any questions or corrections.
Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
