Marvell Technology, Inc. (Nasdaq: MRVL) shares trade a higher premarket on Tuesday.
On Monday the company announced a final deal to sell its automotive Ethernet company Infineon Technologies AG (OTC: IFNNY) For $ 2.5 billion in an All-Cash deal.
The transaction includes Marvell's Brightlane Automotive Ethernet portfolio and related assets.
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The company expected this segment to generate $ 225 million to $ 250 million in income in 2025, with a gross margin of around 60%.
Approved by the Marvell Board of Directors, the deal is expected to be closed at the end of 2025, pending the approvals of the regulations and standard closing conditions.
Matt Murphy, chairman and CEO of Marvell, said: “We believe that this transaction yields the strongest financial return for Marvell shareholders, given the compelling rating.”
Jochen Hanebeck, CEO of Infineon added: “We will use this very additional Ethernet technology by combining it with our existing, wide product portfolio to offer our customers even more extensive, leading solutions for software-defined vehicles.”
“The transaction will support our profitable growth strategy, including new opportunities in the field of physical AI such as humanoid robots.”
Last month the company and Terahop Pcie Gen 6 debut about optics to stimulate the speed and scalability of AI Datacenter on the Optical Networking and Communication Conference and Exposition (OFC) 2025.
Investors can get through exposure to MRVL via SPEER ALPHA ETF (Nasdaq: SPRX) and Innovator Deepwater Frontier Tech ETF (NYSE: Loup).
Price promotion: MRVL shares rose by 3.82% at $ 52.95 for the market during the last check Tuesday.
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This article Marvell discharges Auto Ethernet segment to Infineon Tech for $ 2.5 billion cash originally on Benzinga.com
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