Marvell Completes Divestiture of Automotive Ethernet Business to Infineon for $2.5 Billion in All-Cash Transaction

Rhea-AI Summary

Marvell Technology (NASDAQ: MRVL) has completed the sale of its Automotive Ethernet business to Infineon Technologies AG for $2.5 billion in an all-cash transaction. The deal closed on August 14, 2025, eleven days into Marvell's Q3 fiscal 2026.

The divested Automotive Ethernet business contributed mid-single-digit millions in revenue during the initial days of Q3 FY2026, and was projected to generate $225-250 million in revenue for fiscal 2026. Marvell expects no material impact on its non-GAAP earnings per share from this transaction. The company will discuss Q2 FY2026 results and Q3 guidance in its upcoming earnings call on August 28, 2025.

Positive

• Received $2.5 billion in cash from the divestiture
• No material impact expected on non-GAAP earnings per share despite the business sale
• Strategic move to streamline operations and focus on core business

Negative

• Loss of projected $225-250 million in revenue for fiscal 2026 from the divested business
• Reduction in automotive market exposure and related growth opportunities

SANTA CLARA, Calif., Aug. 14, 2025 /PRNewswire/ -- Marvell Technology, Inc. (NASDAQ: MRVL), a leader in data infrastructure semiconductor solutions, today announced it has completed the sale of its Automotive Ethernet business to Infineon Technologies AG ("Infineon") for $2.5 billion in an all-cash transaction.

The transaction closed eleven days into Marvell's third quarter of fiscal 2026, during which the Automotive Ethernet business contributed mid-single-digit millions of dollars in revenue. Effective August 15, 2025, Marvell's financial results will no longer include contributions from the Automotive Ethernet business.

As previously disclosed in Marvell's April 7, 2025 announcement of the definitive agreement, the Automotive Ethernet business was expected to contribute between $225 million and $250 million in revenue during fiscal 2026.

Marvell does not expect the transaction to have a material impact on its non-GAAP earnings per share.

As announced on August 4, 2025, Marvell will host a conference call to review its second quarter fiscal 2026 financial results and provide third quarter guidance on Thursday, August 28, 2025, at 1:45 p.m. Pacific Time.

About Marvell
To deliver the data infrastructure technology that connects the world, we're building solutions on the most powerful foundation: our partnerships with our customers. Trusted by the world's leading technology companies for over 30 years, we move, store, process and secure the world's data with semiconductor solutions designed for our customers' current needs and future ambitions. Through a process of deep collaboration and transparency, we're ultimately changing the way tomorrow's enterprise, cloud, automotive, and carrier architectures transform—for the better.

Marvell and the M logo are trademarks of Marvell or its affiliates. Please visit www.marvell.com for a complete list of Marvell trademarks. Other names and brands may be claimed as the property of others.

Forward-Looking Statements under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements within the meaning of the federal securities laws that involve risks and uncertainties. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future events, results or achievements. Actual events, results or achievements may differ materially from those contemplated in this press release. Forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict, including those described in the "Risk Factors" section of our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and other documents filed by us from time to time with the SEC. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and no person assumes any obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.

For further information, contact:

Investors
Ashish Saran
ir@marvell.com

Media
Kim Markle
pr@marvell.com

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SOURCE Marvell

FAQ

How much did Marvell (MRVL) sell its Automotive Ethernet business for?

Marvell sold its Automotive Ethernet business to Infineon Technologies AG for $2.5 billion in an all-cash transaction.

When did Marvell complete the sale of its Automotive Ethernet business to Infineon?

Marvell completed the sale on August 14, 2025, eleven days into its third quarter of fiscal 2026.

What was the revenue contribution of MRVL's Automotive Ethernet business?

The business was expected to contribute $225-250 million in revenue during fiscal 2026 and had contributed mid-single-digit millions in Q3 FY2026 before the sale.

How will the Automotive Ethernet business sale affect Marvell's earnings?

Marvell stated that the transaction is not expected to have a material impact on its non-GAAP earnings per share.

When will Marvell report its Q2 fiscal 2026 earnings?

Marvell will host its Q2 fiscal 2026 earnings call on Thursday, August 28, 2025, at 1:45 p.m. Pacific Time.