Infineon to Acquire Marvell's Automotive Ethernet Unit for $2.5 Billion

Infineon Technologies AG has announced an agreement to purchase Marvell Technology’s Automotive Ethernet business for $2.5 billion in cash. This strategic acquisition aims to bolster Infineon’s capabilities in the realm of software-defined vehicles and will enhance its existing microcontroller business.

The deal will see Infineon integrate a business that serves over 50 automotive manufacturers, including seven of the top ten OEMs. The acquired unit is projected to generate revenues of $225 - $250 million in 2025, with a projected gross margin of approximately 60%.

Marvell’s Automotive Ethernet division, with offices spread across the U.S., Germany, and Asia, will become part of Infineon’s Automotive division post-closure. Infineon plans to finance the acquisition using both its existing liquidity and new debt, having already secured financing from banks. The transaction awaits customary closing conditions and regulatory approvals, with an expected conclusion within the 2025 calendar year.