NXP will acquire Marvell's wi-fi connectivity business

Marvell, the global leader in infrastructure semiconductor solutions, announced that NXP will acquire Marvell's wi-fi connectivity business in a $1.76 billion, all-cash deal that has been finalized.The acquisition includes Marvell's wi-fi and bluetooth technology portfolio and related assets.The business, which has about 550 employees worldwide, generated revenue of about $300 million for Marvell in fiscal 2019.The transaction, which was approved by the NXP and Marvell boards, is expected to close in the first quarter of 2020, subject to customary closing conditions and regulatory approvals.

Marvell expects the divestiture to improve gross margins and operating margins.Marvell answered questions about the deal in a conference call on Thursday, May 30, 2019, to announce financial results for the first quarter of fiscal 2020.

Matt Murphy, Marvell's President and CEO, said: "NXP has built a broad consumer base and premium platform for Internet of things applications and is ideal for Marvell's innovative wi-fi technology and team.At the same time, this transaction will provide Marvell shareholders with a high valuation and higher economic returns, accelerating Marvell's transformation to a leading infrastructure provider for 5G, data centers, enterprise and automotive Ethernet applications."