SANTA CLARA, Calif.,
May 29, 2019 /PRNewswire/ -- Marvell
(NASDAQ: MRVL), a leader in infrastructure semiconductor solutions,
today announced that it has entered into a definitive agreement
under which NXP will acquire Marvell's Wi-Fi Connectivity business
in an all-cash, asset transaction valued at $1.76 billion. The acquisition encompasses
Marvell's Wi-Fi and Bluetooth technology portfolios and related
assets. The business employs approximately 550 people
worldwide and generated roughly $300
million in revenue in Marvell's fiscal 2019. This
transaction has been approved by the boards of directors of NXP and
Marvell and is expected to close by calendar Q1 2020, subject to
customary closing conditions and regulatory approvals.
Marvell anticipates that this divestiture will enhance its gross
and operating margins upon closing. Marvell has a previously
scheduled conference call to review its first quarter of fiscal
2020 financial results on Thursday, May 30,
2019 and will address all questions regarding this
transaction at that time.
"NXP has built a broad consumer footprint and an
optimized platform for IoT applications, making it an ideal
home for our innovative Wi-Fi technology and team," said
Matt Murphy, president and CEO of
Marvell. "At the same time,
this transaction yields a premium valuation and
substantially
higher economic return for Marvell shareholders
while accelerating our transformation into a leading
infrastructure supplier spanning 5G, data center, enterprise
and automotive Ethernet applications."
Forward-Looking Statements
Except for the historical information contained herein, the
statements in this press release, including those concerning the
divestiture, the expected benefits of the divestiture and the
timing of the closing of the divestiture, are "forward-looking
statements" within the meaning of the "safe harbor" provisions of
the Private Securities Litigation Reform Act of 1995. These
forward-looking statements speak only as of the date of this press
release. Actual results or events could differ materially
from those anticipated in those forward-looking statements as a
result of certain risks including: the risk that the proposed
divestiture will not be completed, the risk that Marvell may not
realize the anticipated benefits of the divestiture or that such
benefits may take longer to realize than anticipated and other
risks associated with the divestiture. Marvell undertakes no
obligation to update the forward-looking information in this press
release. Other potential risks and uncertainties that could
cause actual results to differ materially are disclosed in
Marvell's filings with the Securities and Exchange Commission
available from the SEC website, www.sec.gov.
About Marvell
Marvell first revolutionized the digital storage industry by
moving information at speeds never thought possible. Today,
that same breakthrough innovation remains at the heart of the
company's storage, processing, networking, security and
connectivity solutions. With leading intellectual property
and deep system-level knowledge, Marvell's semiconductor solutions
continue to transform the enterprise, cloud, automotive, industrial
and consumer markets. To learn more, visit:
https://www.marvell.com
Credit Suisse acted as exclusive financial adviser to Marvell
while Gibson, Dunn & Crutcher LLP acted as legal counsel to
Marvell.
Marvell and the M logo are registered trademarks of Marvell
and/or its affiliates in the US and/or elsewhere. Other names and
brands may be claimed as the property of others.
Investor Relations
Ashish Saran
ir@marvell.com
408-222-0777
Media Relations
Hanna Kang
pr@marvell.com
408-222-3780
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SOURCE Marvell