Marvell to Acquire Aquantia, Eying Automotive Networking Market

Marvell on Monday announced that it had reached an agreement to buy the networking specialist firm Aquantia for $452 million. The acquisition will allow Marvell to significantly augment their current networking capabilities, with the company intending to use Aquantia’s technology in future PC, enterprise, and especially in-vehicle applications.

Under the terms of the deal, Marvell will pay Aquantia shareholders $13.25 per share in cash, bringing the total value of the deal to $452 million. The transaction has already been approved by board of directors of both companies, and subject to regulatory approval, is expected to close by the end of calendar year 2019.

Aquantia for its part is best known for their Multi-Gig (2.5G/5G/10G) Ethernet controllers for a variety of markets, including PC, datacenter, and automotive. In fact it’s this latter market that seems to have caught Marvell’s eye, as the bulk of Marvell’s official press release is dedicated to talking about automotive applications. Marvell in particular is looking to grow their high-speed in-car networking product portfolio, with Aquantia’s multi-gig technology helping Marvell to deliver products with enough bandwidth for level 4 and level 5 autonomous driving systems. Fittingly, on a broader basis Marvell is expecting the market for in-vehicle networking to grow significantly over the coming years, citing one study that expects over 350 million ports by 2022.

Marvell to Acquire Aquantia, Eying Automotive Networking Market 1

Meanwhile, commenting on the buyout from their end, Aquantia’s CEO and chairman Faraj Aalaei had this to say:

“Marvell and Aquantia share a vision where the network – whether in an autonomous vehicle, an enterprise application or in cloud infrastructure – can seamlessly power the data economy. This is a fantastic opportunity as our customers will benefit from Marvell’s global scale and expanding footprint in Multi-Gig network applications.”

It’s also noteworthy here that along with Aquantia’s technology, Marvell will get to acquire Aquantia’s business connections. This includes Aquantia’s collaboration with NVIDIA for their Xavier and Pegasus Drive AGX systems, which in turn are expected to be adopted by a number of auto makers. So this potentially opens the door to a much larger market for Marvell.

Marvell to Acquire Aquantia, Eying Automotive Networking Market 2

Overall the buyout of Aquantia is the latest high-profile acquisition for Marvell. The company previously picked up CPU and SoC specialist Cavium in late 2017, using their technology to improve Marvell’s own SoCs. With the addition of Aquantia, Marvell has developed a rather deep portfolio of products and IP that can be used by a variety of applications, from embedded to automotive to the datacenter.

As for Aquantia, it’s worth noting that the sale comes at a time where the company has been struggling to grow out of startup mode and become profitable. Also released today were the company’s Q1’19 earnings, where Aquantia lost $13M on $17M in revenue. These sorts of acquisitions are negotiated over many months, so the Marvell buyout shouldn’t be a direct reaction to their Q1 earnings. But on the whole Aquantia hasn’t been in the black yet, making an acquisition one way to stabilize the core business.

Related Reading:

Source: Marvell

About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

E-Crypto News Executive Interviews

Crypto Scams

Cryptosoft Trading Bot Review
June 27, 2022
The Largest Crypto Scams Of 2022 (So Far)
The Largest Crypto Scams Of 2022 (So Far)
June 14, 2022
How Do Scammers Entice Their Prey?
May 10, 2022
Beanstalk Farms Loses $80M In A Massive DeFi Governance Flash-Loan Hack
Beanstalk Farms Loses $80M In A Massive DeFi Governance Flash-Loan Hack
April 23, 2022
Joon Pak Head of Crypto at Prove talks to Us about Crypto Fraud And More
April 11, 2022

Automated trading with HaasBot Crypto Trading Bots

Blockchain/Cryptocurrency Questions and Answers

Roundtable Interview-What is the Effect of The Russia-Ukraine War on Cryptocurrency Prices?
March 4, 2022
How Does Bitcoin Casino Work + 2021 Beginner’s Guide
November 8, 2021
How to Buy and Sell Cryptocurrency
November 8, 2021
What Are Bitcoin Futures And How Will They Work In 2022?
November 4, 2021
The Unconventional Guide to Ethereum
October 28, 2021

CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin21,068 0.35 % 1.86 % 2.09 %
Ethereum1,222.7 0.31 % 0.84 % 8.01 %
Tether0.9968 0.36 % 0.37 % 0.32 %
USD Coin0.9986 0.27 % 0.33 % 0.42 %
BNB238.76 0.57 % 0.54 % 9.93 %
Binance USD0.9993 0.70 % 0.20 % 0.48 %
XRP0.3506 0.79 % 4.11 % 8.17 %
Cardano0.4909 0.68 % 3.46 % 0.39 %
Solana38.98 0.72 % 4.90 % 9.90 %
Dogecoin0.07240 0.54 % 7.42 % 20.17 %

Bitcoin (BTC) $ 21,174.00
Ethereum (ETH) $ 1,227.73
Tether (USDT) $ 0.999808
USD Coin (USDC) $ 1.00
BNB (BNB) $ 239.85
Binance USD (BUSD) $ 1.01
XRP (XRP) $ 0.352513
Cardano (ADA) $ 0.494102
Solana (SOL) $ 39.23
Dogecoin (DOGE) $ 0.072787