Marvell Technology Inc. MRVL, +0.10% said Tuesday it has reached an agreement to acquire Innovium Inc., a provider of software for cloud and edge data centers, in an all-stock deal valued at $1.1 billion. The deal is expected to close by year-end and to add $150 million in incremental revenue in fiscal 2023. It’s expected to be neutral to Marvell’s adjusted per-share earnings in the first quarter after close and too boost it in the first full fiscal year after that. Marvell, which makes infrastructure semiconductor software, has a portfolio of Ethernet switch semiconductor solutions for the enterprise and carrier segment. “Innovium’s TERALYNX(TM) switching architecture delivers the ultra-low latency, optimized power, high performance, and innovative telemetry that are critical in today’s cloud-scale data centers,” Marvell said in a statement. The deal will allow Marvell to “immediately participate in the fastest growing segment of the switch market with a cloud-optimized solution,” said the statement. Marvell shares were slightly higher premarket and have gained 27% in the year to date, while the S&P 500 SPX, -0.18% has gained 16.8%.
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