Infineon Technologies to buy Marvell's auto ethernet business for $2.5 billion
FILE PHOTO: U.S. dollar bills are seen on a light table at the Bureau of Engraving and Printing in Washington, November 14, 2014. REUTERS/Gary Cameron/File Photo/File Photo
German chipmaker Infineon Technologies said on Monday it would buy Marvell Technology's automotive ethernet business for about $2.5 billion in cash, to expand its microcontroller segment.
The automotive ethernet business, which will become a part of Infineon's automotive division, is expected to generate revenue between $225 million and $250 million in the calendar year 2025, with a gross margin of nearly 60 per cent.
Infineon has secured acquisition financing from banks and will incur additional debt to finance the deal and expects it to close this year.
Source: Reuters
