Marvell Selling Wi-Fi And Bluetooth Portfolio To NXP For $1.76Bby Billy Tallis on May 29, 2019 10:00 AM EST
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Marvell this morning has announced that it is selling off its Wi-Fi and Bluetooth chipset business to NXP Semiconductors in a $1.76 billion cash transaction. This business unit includes about 550 employees and generated about $300 million in revenue for Marvell during their fiscal year 2019. For NXP, the acquisition seems to complement and expand their existing portfolio that is focused mostly on automotive, industrial and embedded/IoT products. For Marvell, the sale appears to be mostly about getting rid of a low-margin product line.
The sale of Marvell's wireless division comes on the heels of two major acquisitions announced earlier this month: wired networking firm Aquantia for $452 million, and GlobalFoundries subsidiary Avera Semiconductor for $650 million. With these changes, it's not clear what Marvell's long-term strategy is, but at least the sale of the wireless business will more than offset the cost of Marvell's recent acquisitions. All of these transactions are significantly smaller than Marvell's 2018 acquisition of Cavium for $5.5 billion. Last year, Qualcomm abandoned their $44 billion bid to acquire NXP after failing to gain Chinese regulatory approval.
Marvell and NXP expect the deal to close by the first quarter of calendar year 2020. Marvell will be announcing the results for the first quarter of their fiscal year 2020 tomorrow, and will answer questions about the sale during their earnings conference call.
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jeremyshaw - Wednesday, May 29, 2019 - linkGlad to know the cheap junk WiFi ICs will now be branded NXP Armada instead of Marvell Armada.
Billy Tallis - Wednesday, May 29, 2019 - linkI don't think any of the Armada SoCs include wireless; they just connect to the WiFi chips using PCIe. Marvell's brand name for at least some of their wireless chips is Avastar.
jeremyshaw - Wednesday, May 29, 2019 - linkYou are correct. I don't know why I associated Armada with their wireless products.
Friendly0Fire - Wednesday, May 29, 2019 - linkIf this could break Microsoft's partnership with Marvell for their wifi chips, that would be excellent.