Marvell to Sell Automotive Ethernet Business to Infineon for $2.5 Billion in Cash

Rhea-AI Summary

Marvell Technology (NASDAQ: MRVL) has announced a definitive agreement to sell its Automotive Ethernet business to Infineon Technologies AG for $2.5 billion in an all-cash transaction. The deal includes Marvell's Brightlane® Automotive Ethernet portfolio and related assets.

The business is projected to generate revenue between $225-250 million in fiscal 2026. The transaction, approved by Marvell's Board of Directors, is expected to close within calendar year 2025, subject to customary conditions and regulatory approvals.

The sale aligns with Marvell's transformation into a data infrastructure solutions provider, with data center end market now representing 75% of consolidated revenue in Q4 fiscal 2025.

Positive

• Substantial cash injection of $2.5 billion from the sale
• Strong valuation at ~10x expected fiscal 2026 revenue
• Strategic focus on core data infrastructure business with 75% revenue from data center segment
• All-cash transaction provides immediate value for shareholders

Negative

• Loss of future revenue stream from automotive ethernet segment ($225-250M projected for fiscal 2026)
• Reduction in business diversification by exiting automotive market

News Market Reaction – MRVL

-1.90%

1 alert

-1.90% News Effect

On the day this news was published, MRVL declined 1.90%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Delivers Compelling Financial Returns for Marvell Shareholders

SANTA CLARA, Calif., April 7, 2025 /PRNewswire/ -- Marvell Technology, Inc. (NASDAQ: MRVL), a leader in data infrastructure semiconductor solutions, today announced that it has entered into a definitive agreement under which Infineon Technologies AG ("Infineon") will acquire Marvell's Automotive Ethernet business in an all-cash transaction valued at $2.5 billion. This business in fiscal 2026 is expected to generate revenue in the range of $225-250 million. The acquisition includes Marvell's Brightlane® Automotive Ethernet portfolio and related assets. This transaction has been approved by Marvell's Board of Directors, and is expected to close within calendar year 2025, subject to customary closing conditions and regulatory approvals.

"Marvell has transformed itself into a leading data infrastructure solutions provider, with the data center end market driving 75% of consolidated revenue in the fiscal fourth quarter of 2025," said Matt Murphy, Chairman and CEO of Marvell. "We are immensely proud of the progress we have made in organically growing our Automotive Ethernet business. We believe this transaction delivers the strongest financial return for Marvell shareholders, given its compelling valuation. With Infineon's optimized platform for automotive applications, we are confident the Automotive Ethernet business is well positioned for continued growth and success."

Marvell plans to discuss the transaction on its upcoming conference call to review its first quarter of fiscal 2026 financial results, which is scheduled for Thursday, May 29, 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 25 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.

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
Senior Vice President, Investor Relations
408-222-0777
ir@marvell.com

Media

pr@marvell.com

FGS Global
212-687-8080
Marvell@fgsglobal.com

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SOURCE Marvell

FAQ

How much is Infineon paying for Marvell's (MRVL) Automotive Ethernet business?

Infineon is acquiring Marvell's Automotive Ethernet business for $2.5 billion in an all-cash transaction.

What is the expected revenue of MRVL's Automotive Ethernet business in fiscal 2026?

The Automotive Ethernet business is expected to generate revenue between $225-250 million in fiscal 2026.

When is the Marvell (MRVL) Automotive Ethernet sale expected to close?

The transaction is expected to close within calendar year 2025, subject to customary conditions and regulatory approvals.

What percentage of Marvell's (MRVL) revenue comes from the data center segment?

Data center end market drives 75% of Marvell's consolidated revenue as of fiscal Q4 2025.

What assets are included in MRVL's Automotive Ethernet business sale to Infineon?

The sale includes Marvell's Brightlane® Automotive Ethernet portfolio and related assets.