Marvell Buying Avera From GlobalFoundaries in $650 Million Deal

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Marvell Technology Group is buying Avera Semiconductor from GlobalFoundaries, including design deals with infrastructure OEMs, a wafer supply agreement between GlobalFoundaries and Marvell, as well as Avera's revenue base. Marvell will pay $650 million in cash for Avera, and then another $90 million based on achieving business goals, valuing the deal as high as $740 million.

"Our acquisition of Avera enables us to offer the complete spectrum of product architectures spanning standard, semi-custom to full ASIC solutions," Matt Murphy, president and CEO of Marvell said in a statement. "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."

Avera previously was part of IBM's Microelectronics business and specializes in Application Specific Integrated Circuits (ASICs). It was launched as a wholly owned subsidiary of GlobalFoundaries in November. GlobalFoundraires see the purchase as an opportunity to capitalize on 5G infrastructure and base stations.

The purchase is planned to close by the end of Marvell's 2020 fiscal year, assuming all goes well in the regulatory space.

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