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Marvell Technology To Buy Aquantia For $13.25/share In Cash - Quick Facts

Marvell Technology Group Ltd. (MRVL) agreed Monday to acquire all outstanding shares of Aquantia, Corp. (AQ) for consideration of $13.25 per share in an all-cash deal valued at about $452 million. The deal is approved by the boards of directors of both companies. Aquantia is a leader in Multi-Gig Ethernet connectivity.

The deal positions Marvell to further capitalize on automotive in-vehicle networking and strengthens its Multi-Gig Ethernet portfolio for enterprise infrastructure, data center and access. This unique combination accelerates Marvell's vision for the future of automotive networking with speeds necessary to enable level 4 and 5 autonomous driving.

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 highly complementary transaction is expected to be immediately accretive to Marvell's adjusted earnings per share and generate significant annual run-rate synergies of $40 million to be realized within 12 months after the transaction closes.

Marvell intends to finance the transaction with cash on hand and revolver borrowings. The transaction is not subject to any financing condition and is expected to close by the end of 2019, subject to regulatory approval as well as other customary closing conditions, including the adoption by Aquantia's stockholders of the merger agreement.

Based on preliminary financial information, Marvell expects its first quarter revenue to be in the range of $650 million +/- 3%, the same range as guided on March 7, 2019.

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