SANTA CLARA, Calif.,
May 20, 2019 /PRNewswire/
-- Marvell (NASDAQ: MRVL) today announced it has entered into
definitive agreements to purchase Avera Semiconductor, the
Application Specific Integrated Circuit (ASIC) business of
GLOBALFOUNDRIES. This acquisition brings together Avera Semi's
leading custom design capabilities with Marvell's advanced
technology platform and scale, creating a leading ASIC supplier for
wired and wireless infrastructure. The agreements include
transfer of Avera's revenue base, strategic design wins with
leading infrastructure OEMs, and a new long-term wafer supply
agreement between GLOBALFOUNDRIES and Marvell.
Marvell is focused on becoming the world's leading supplier of
infrastructure semiconductor solutions. Avera's ASIC
capabilities will accelerate this
transformation. Specifically, Avera's advanced full custom
development capabilities complements Marvell's standard and
semi-custom product portfolio. Previously part of IBM's
Microelectronics business, Avera has successfully executed more
than 2,000 complex designs in its 25-year history and built a
significant business, supported by approximately 800 talented
technologists. Avera brings highly innovative design competencies
in analog, mixed-signal and SoCs as well as a rich IP portfolio
including high-speed SerDes, high-performance embedded memory and
advanced packaging technology. They have built strong relationships
with blue-chip wired and wireless networking OEMs, having delivered
custom solutions for multiple generations of switches, routers and
base stations. More recently, Avera has started to address
emerging opportunities in next generation cloud data centers with
multiple programs in development today.
As a leading supplier of standard and semi-custom products into
these same markets, Marvell has also seen an expanding opportunity
pipeline for custom solutions utilizing its leading IP and
technology platform. For example, within 5G infrastructure, Marvell
offers complete silicon platforms that enable a wide range of
digital processing including baseband, processors, Ethernet
switches and PHYs. As these products have gained traction in the
marketplace, Marvell's opportunity set has recently expanded to
encompass a number of custom SoCs addressing a broader portion of
the base station. Several of these new products are designed
to replace FPGAs with purpose-built optimized silicon. At the
same time, Avera has provided custom products to be deployed in the
radio head of a leading wireless infrastructure OEM for multiple
generations. These solutions expand Marvell's addressable market
and are indicative of the broader opportunity for custom ASICs
within both wired and wireless infrastructure. The addition of
Avera's talented team and extensive ASIC design expertise will
accelerate Marvell's ability to address these opportunities and
capture significantly more content in the broader infrastructure
market.
"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. In addition, we are looking forward to furthering
our successful partnership with GLOBALFOUNDRIES in the coming
years and beyond."
"This transaction is another example of our commitment to focus
on our core business of providing differentiated foundry offerings
as a manufacturing service provider, while establishing deeper
relationships with customers who are leaders in their respective
sectors," said Tom Caulfield, CEO at
GLOBALFOUNDRIES. "With this deal and our growing strategic
partnership with Marvell, we will forge new opportunities for the
teams of both companies to leverage GF's broad set of offerings and
capitalize on the 5G infrastructure market as well as other
opportunities. We look forward to becoming a strategic
provider for Marvell for decades to come."
Under the terms of the agreement, Marvell will pay
GLOBALFOUNDRIES $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 transaction is expected to
close by the end of Marvell's fiscal year 2020 pending receipt of
regulatory approvals and other customary closing conditions.
The acquisition is expected to be accretive to Marvell's
non-GAAP earnings per share in the first full year following the
close.
Call/Webcast to Discuss Transaction
Interested
parties may join a conference call Monday,
May 20, 2019 at 5:00 p.m. Eastern
Time to discuss the transaction by dialing 1 (844) 647-5488
in the U.S. or +1 (615) 247-0258 internationally, with the
conference ID 8955899. A webcast of the call can be accessed
by visiting Marvell's investor relations website. A replay
will be available until Monday, May 27,
2019 by dialing 1 (855) 859-2056, replay ID 8955899.
Forward-Looking Statements
Except for the historical
information contained herein, the statements in this press release,
including those concerning the acquisition, the expected benefits
of the acquisition and the timing of the closing of the
acquisition, are "forward-looking statements" within the meaning of
the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements speak only as
of the date of this press release. Actual results or events could
differ materially from those anticipated in those forward-looking
statements as a result of certain risks including: the risk that
the proposed acquisition will not be completed, the risk that
Marvell may not realize the anticipated benefits of the acquisition
including the benefits related to opportunities in the 5G
infrastructure market, or that such benefits may take longer to
realize than anticipated, and other risks associated with the
acquisition, such as the ability to successfully integrate the
acquired technologies and operations, the potential for unexpected
liabilities, Marvell's ability to retain customer relationships and
key employees, and Marvell's ability to invest in the business on a
going forward basis. Marvell undertakes no obligation to
update the forward-looking information in this press release. Other
important factors that could cause actual results to differ
materially are contained in the Company's 10-Qs and 10-Ks that are
on file with the Securities and Exchange Commission.
About Marvell
Marvell first revolutionized the
digital storage industry by moving information at speeds never
thought possible. Today, that same breakthrough innovation remains
at the heart of the company's storage, processing, networking,
security and connectivity solutions. With leading intellectual
property and deep system-level knowledge, Marvell's semiconductor
solutions continue to transform the enterprise, cloud, automotive,
industrial, and consumer markets. To learn more, visit:
www.marvell.com.
About GF
GLOBALFOUNDRIES (GF) is a leading
full-service foundry delivering truly differentiated semiconductor
technologies for a range of high-growth markets. GF provides a
unique combination of design, development, and fabrication
services, with a range of innovative IP and feature-rich offerings
including FinFET, FDX™, RF, and power/analog mixed signal. With a
manufacturing footprint spanning three continents, GF has the
flexibility and agility to meet the dynamic needs of clients across
the globe. GF is owned by Mubadala Investment Company. For more
information, visit globalfoundries.com.
Marvell and the Marvell logo are registered
trademarks of Marvell and/or its affiliates.
For further information, contact:
Ashish Saran
408-222-0777
ir@marvell.com
Erica McGill
GLOBALFOUNDRIES
(518) 795-5240
erica.mcgill@globalfoundries.com
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SOURCE Marvell