Marvell Technology Group agreed to Aquantia for $13.25 per share in cash, representing approximately $452 million in transaction value after adjusting for net cash on Aquantia's balance sheet.
Aquantia, which is based in San Jose, California, specializes in Multi-Gig 2.5G/5G/10G Ethernet over copper products. Its portfolio automotive PHYs for in-vehicle Ethernet networks supporting level 4 and 5 autonomous driving.
Marvell said the acquisition complements its portfolio of copper and optical physical layer product, including its gigabit PHY and secure switch products.
"Our acquisition of Aquantia will fuel Marvell's leadership in the transformation of the in-car network to high-speed Ethernet over the next decade," said Matt Murphy, president and CEO of Marvell. "At the same time, Aquantia extends our reach in the rapidly emerging Multi-Gig segment of network infrastructure and creates a leading end-to-end Ethernet connectivity portfolio."
"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," said Faraj Aalaei, chairman and CEO of Aquantia. "This is a fantastic opportunity as our customers will benefit from Marvell's global scale and expanding footprint in Multi-Gig network applications."
The transaction is expected to be immediately accretive to Marvell's non-GAAP earnings per share and generate significant annual run-rate synergies of $40 million to be realized within 12 months after the transaction closes.
Aquantia expects weaker Q1
Separately, Aquantia reported revenue of $17.0 million for Q1 2019, a decrease of 42 percent sequentially and 40 percent year-over-year. First quarter 2019 net loss was $13.1 million, or a loss of $0.37 per diluted share, compared to fourth quarter 2018 net loss of $5.5 million, or a loss of $0.16 per diluted share, and first quarter 2018 net loss of $1.4 million, or $0.04 per diluted share.
“We experienced weaker demand in the first quarter than we had anticipated as we saw several customers push out purchase orders,” said Faraj Aalaei, Chairman and CEO. “Our technical leadership remains strong and we are encouraged by our customers’ forecast as we see the deployment of 802.11ax in the Enterprise and our 10G PON design wins with Asian service providers driving our revenue growth throughout the year.”
http://www.aquantia.com
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Aquantia intros automotive Ethernet portfolio- multi-gig over copper
The market for automotive Ethernet could be many times larger than the data center, enterprise and access segments where multi-gig Ethernet-over-copper used today. Future vehicles, especially Level 4/5 autonomous vehicles, will require high-performance onboard networks to connect cameras, sensors, and displays with GPUs and CPUs.
Level 4/5 requirements include multiple high-resolution videos cameras, some of which are expected to be up to 4K60p at 20-bit resolution requiring full 10 Gbps connectivity. The network must be secure and redundant. It must also use reliable and low-cost cabling. For these reasons, Aquantia believes its multi-gig Ethernet over copper technologies are best suited for the task.Aquantia's AQcelerate Automotive product line includes the following devices, which all support data rates up to 10GbE:
- The AQV107 Multi-Gig PHY
- The AQVC107 PCIe Multi-Gig MAC+PHY Ethernet controller
- The AQVC100 PCIe Multi-Gig controller (MAC only)
Aquantia intros 10 Gigabit Ethernet MAC Controller
Features of the AQtion AQC100 include:
- PCI Express 3.0 modes with x4/x2/x1 lane operation
- SFP+ for Direct Attach Copper (DAC) and optical SFP modules
- Board-level or backplane connectivity between chips
- Support for Windows, macOS, Linux, Data Plane Development Kit and other operating systems
- Less than 1W power consumption
