By Connor Hart
Marvell Technology will sell its automotive ethernet business to Infineon Technologies for $2.5 billion in cash.
The deal includes the semiconductor company's Brightlane automotive ethernet portfolio--which supports in-vehicle networks that power features such as collision detection, lane departure warnings and autonomous driving--as well as related assets.
The automotive ethernet business is expected to generate between $225 million and $250 million in revenue in fiscal 2026, Marvell said Monday. The divestiture has been approved by its board and is expected to close within the year.
Chief Executive Matt Murphy said that the company has shifted its focus toward powering data centers, which accounted for about 75% of total revenue during its most recent quarter.
"We believe this transaction delivers the strongest financial return for Marvell shareholders, given its compelling valuation," he said. "With Infineon's optimized platform for automotive applications, we are confident the Automotive Ethernet business is well positioned for continued growth and success."
The company said it will further discuss the transaction during its first-quarter earnings call, scheduled for May 29.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
April 07, 2025 17:15 ET (21:15 GMT)
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