Marvell Offloads Auto Ethernet Segment To Infineon Tech For $2.5 Billion Cash

Marvell Technology, Inc. ( MRVL ) shares are trading higher premarket on Tuesday.

On Monday, the company disclosed a definitive deal to sell its Automotive Ethernet business to Infineon Technologies AG ( IFNNF ) for $2.5 billion in an all-cash deal.

The transaction includes Marvell's ( MRVL ) Brightlane Automotive Ethernet portfolio and related assets.

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The company projected this segment to generate $225 million to $250 million in revenue in 2025, with a gross margin of around 60%.

Approved by Marvell's ( MRVL ) Board of Directors, the deal is expected to close by the end of 2025, pending regulatory approvals and standard closing conditions.

Matt Murphy, Chairman and CEO of Marvell ( MRVL ) said, "We believe this transaction delivers the strongest financial return for Marvell ( MRVL ) shareholders, given its compelling valuation."

Jochen Hanebeck, CEO of Infineon ( IFNNF ) added, "We will leverage this highly complementary Ethernet technology by combining it with our existing, broad product portfolio to provide our customers with even more comprehensive, leading solutions for software-defined vehicles."

"The transaction will support our profitable growth strategy going forward, including new opportunities in the field of physical AI such as humanoid robots."

Last month, the company and TeraHop debuted PCIe Gen 6 over optics to boost AI data center speed and scalability at the Optical Networking and Communication Conference and Exposition (OFC) 2025.

Investors can gain exposure to MRVL via Spear Alpha ETF ( SPRX ) and Innovator Deepwater Frontier Tech ETF ( LOUP ) .

Price Action: MRVL shares are up 3.82% at $52.95 premarket at the last check Tuesday.

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