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Marvell Technology (NASDAQ: MRVL), a provider of semiconductor solutions, has acquired Innovium – a provider of networking solutions for cloud and edge data centers. Marvell will acquire Innovium in an all-stock transaction worth $1.1 billion. The company’s expanded portfolio would increasingly position it as the semiconductor solutions partner of choice for the cloud.
The addition of Innovium will provide Marvell Technology with incremental engineering resources to focus on cloud optimized silicon through the TERALYNX platform as the 9K product family, while continuing to drive its Prestera 2K to 8K product families for the enterprise and carrier switch market. Dedicated architectures would help accelerate Marvell’s ongoing growth in the 5G, cloud, enterprise, and automotive end markets, which all leverage Marvell’s Ethernet platform.
Marvell expects the acquisition of Innovium will enable the addition of approximately $150 million in incremental revenue next fiscal year.
Cloud-Scale Data Centers
Marvell has an extensive portfolio of Ethernet switch semiconductor solutions. It would provide them with a strong and growing position in the enterprise and carrier segments it services – with a broad portfolio of feature-rich products. Given Marvell’s growing momentum in the cloud data center market, which was further enhanced with the recent acquisition of Inphi, developing dedicated high radix, performance optimized switch silicon for use in hyperscale data centers is of growing strategic importance for the company.
Innovium’s TERALYNX switching architecture would deliver the ultra-low latency, optimized power, high performance, and innovative telemetry that are critical in today’s cloud-scale data centers. The company has steadily grown to become a strong supplier in the merchant cloud semiconductor switching market. The acquisition of Innovium would allow Marvell to immediately participate in the fastest growing segment of the switch market with a cloud-optimized solution.
Going forward, Innovium has been selected to become a significant supplier at a Tier 1 cloud customer, and this is expected to drive a significant revenue ramp in calendar 2022. In addition, Innovium is currently engaged with several other leading cloud data center customers in building out their future network architectures.
Optics Forming the Interconnect Fabric
The future architecture of the cloud data center will be more connected than ever – with optics forming the interconnect fabric. With the broadest technology platform in the industry, Marvell is positioned to become a leader in cloud data center solutions, including:
- High-speed Electro-Optical PAM4 and Coherent DSP chipsets
- Pluggable COLORZ DCI modules
- OCTEON-based DPUs for security, offload, and acceleration
- Custom Arm-based server CPUs
- Full custom ASICs
- Bravera Flash and HDD-based storage
- On closing the acquisition of Innovium, cloud-optimized Ethernet switches
Marvell Technology stated that this portfolio positions the company as the semiconductor solutions partner of choice for the cloud.
“Our acquisition of Innovium and its complementary offerings further extends Marvell’s leadership in the cloud, and I am excited that Innovium has secured significant share at a marquee cloud customer,” said Matt Murphy, President and CEO of Marvell Technology. “Innovium has established itself as a strong cloud data center merchant switch silicon provider with a proven platform, and we look forward to working with their talented team who have a strong track record in the industry for delivering multiple generations of highly successful products.”
