Infineon Acquires Marvell's Automotive Ethernet Unit for $2.5B

Infineon Technologies has reached an agreement to acquire Marvell Technology's Automotive Ethernet business for $2.5 billion in cash, a strategic move aimed at enhancing Infineon's capabilities in the automotive semiconductor market. This acquisition is expected to generate annual revenues of $225 million to $250 million by 2025, significantly boosting Infineon's existing microcontroller business. Analysts foresee a positive outlook for Marvell's stock, with potential growth exceeding 118% from its current levels, as the deal is viewed favorably by brokerage firms. The transaction, which is still subject to regulatory approvals, will strengthen Infineon's position in the rapidly evolving sector of software-defined vehicles and related applications. Marvell's Automotive Ethernet business serves a broad customer base, including many leading automotive manufacturers, which will further enhance Infineon's market presence. The deal is anticipated to close in 2025, with Infineon planning to finance it through existing liquidity and additional debt.