Marvell To Buy Global Foundries' ASIC Biz For $650 Mln

(RTTNews) - Marvell (MRVL) Monday said it has agreed to buy Avera Semiconductor, the Application Specific Integrated Circuit (ASIC) business of Global Foundries, for $650 million.

The deal include transfer of Avera's revenue base, strategic design wins with leading infrastructure OEMs, and a new long-term wafer supply agreement between Global Foundries and Marvell.

"Our acquisition of Avera enables us to offer the complete spectrum of product architectures spanning standard, semi-custom to full ASIC solutions," said Matt Murphy, president and CEO of Marvell. "With their highly experienced design team and Marvell's leading technology platform, we will be better positioned to capitalize on our expanding opportunity in wired and wireless infrastructure, starting immediately in the fast growing 5G base station market."

Marvell will pay Global Foundries $650 million in cash at closing plus an additional $90 million in cash if certain business conditions are satisfied within the next 15 months. The deal is expected to close by 2020-end. The transaction is expected to be accretive to Marvell's adjusted earnings in full year 2021.