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According to the announcement, the acquisition will enable NXP to deliver complete, scalable processing and connectivity solutions across its focus end markets. The acquisition includes approximately 550 people worldwide. Marvell’s connectivity team has been a pioneer in providing innovative, secure and reliable Wi-Fi and Bluetooth combo solutions for nearly two decades. With approximately $300 million in revenue in Marvell’s fiscal 2019, NXP anticipates revenue associated with the acquired assets to double by 2022.
The acquisition enables NXP to offer a full range of wireless connectivity solutions including WiFi 4, 5, 6 and Bluetooth/ BLE combo along with its flagship edge computing platforms including I.MX, Layerscape, Kinetis, LPC and the newly introduced RT Crossover Processors to provide comprehensive, turn-key solutions for the industrial and IoT, automotive and communication infrastructure markets. NXP also believes it will be able to simplify supply chain logistics and improve time-to-market in the related industries.
“We are excited to be able to combine Marvell’s world-class connectivity with NXP’s industry leading embedded processing, we can offer our customer base the broadest portfolio of Edge solutions which includes tailored security and a full suite of wireless connectivity spanning Wi-Fi, Bluetooth, Bluetooth Low Energy, Zigbee, Thread and NFC,” says Richard Clemmer, chief executive officer of NXP. “I am delighted this world-class team with the right set of complementary connectivity technologies is joining NXP, enabling us to deliver on our commitment to provide Secure Connections for the Smarter World.”
Marvell's activities are based in Santa Clara, California, and the acquisition of the specific business units will expand the US presence of the Dutch semiconductor company in North America. NXP already owns operations in 10 US states and two subsidiaries in Canada. Above all, for NXP, the acquisition allows regaining a leadership position in wireless connectivity technology, following the time wasted in the negotiation process and failed merger discussions between Qualcomm and NXP.
For Marvell, this divestiture will enhance its gross and operating margins upon closing. “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,” says 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.”
The 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.
www.nxp.com