RTTNews | Aug 3, 2021 08:08AM EDT

08:07 Tuesday, August 3, 2021 (RTTNews.com) - Marvell Technology, Inc. (MRVL), a semiconductor manufacturer, announced Tuesday a definitive agreement to acquire Innovium, Inc., a provider of networking solutions for cloud and edge data centers, in an all-stock deal worth $1.1 billion.

Under the deal terms, Innovium shareholders will receive approximately 19.05 million shares of Marvell Stock that will be issued in aggregate in exchange for all outstanding equity of Innovium.

The acquisition price of $1.1 billion is based on Marvell's 10-day VWAP as of July 30, 2021.

The transaction is expected to close by the end of calendar 2021, subject to the satisfaction of customary closing conditions.

The deal is expected to be neutral to Marvell's adjusted earnings per share in the first full quarter after the transaction closes, and accretive in the first full fiscal year thereafter.

The acquisition is also expected to add $150 million in incremental revenue in fiscal 2023.

Marvell said the planned acquisition of Innovium allows it to immediately participate in the fastest growing segment of the switch market with a cloud-optimized solution.

Innovium Chief Technology Officer and Founder Puneet Agarwal will join Marvell after close of the transaction. Innovium CEO Rajiv Khemani will serve as an advisor to Marvell post close.

Further, Marvell said it now expects its second-quarter revenue to be in the range of $1.065 billion +/- 1.5%.

Read the original article on RTTNews ( https://www.rttnews.com/3215234/marvell-technology-to-buy-innovium-in-1-1-bln-all-stock-deal.aspx)

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