Marvell Technology agreed to acquire Innovium, a start-up offering switching silicon for cloud and edge data centers, in an all-stock transaction valued at $1.1 billion.
Innovium, which is based in San Jose, California, offers high-performance switching silicon solutions for cloud and edge data centers. The company was founded in 2014 and has approximately 230 employees.
Marvell, which has an extensive portfolio of Ethernet switch semiconductor solutions, and which recently acquired Inphi, said the deal accelerates its position in cloud data centers. Its portfolio for cloud data centers includes: cloud data center solutions, including:
- High-speed Electro-Optical PAM4 and Coherent DSP chipsets
- Pluggable COLORZ DCI modules OCTEON-based DPUs for security, offload, and acceleration
- Custom Arm-based server CPUs
- Full custom ASICs Bravera
- Flash and HDD-based storage
- and on closing the acquisition of Innovium, cloud-optimized Ethernet switches
“Our acquisition of Innovium and its complementary offerings further extends Marvell’s leadership in the cloud, and I am excited that Innovium has secured significant share at a marquee cloud customer,” said Matt Murphy, President and CEO of Marvell. “Innovium has established itself as a strong cloud data center merchant switch silicon provider with a proven platform, and we look forward to working with their talented team who have a strong track record in the industry for delivering multiple generations of highly successful products.”
“The Innovium vision is centered on delivering breakthrough switch silicon and choice for next-generation cloud and edge data centers. Bringing technology leadership and customer-focused innovation to the market is what drives our team every day,” said Rajiv Khemani, CEO and Founder of Innovium. “I want to recognize and thank our valued employees for their passion, commitment, and outstanding execution. We are excited to join Marvell and accelerate the growth of our business, partnerships, and solution value, while contributing to the company’s fast-growing cloud opportunity.”
Marvell said it will continue to advance its Prestera 2K to 8K product families for the enterprise and carrier switch market. The company expects Innovium will enable the addition of approximately $150 million in incremental revenue next fiscal year.
Innovium pushes switching silicon to 25.6 Tbps with support for 112G PAM4
Innovium's TERALYNX 8 switch, which is aimed at hyperscale data centers and which is expected to sample in the second half of 2020, could be used for highly compact, highest port-density single-chip switches for 100G to 800G configurations, including 1RU, 32 x 800G switch. The silicon will be delivered in a single 7nm die fabricated by TSMC.
Innovium confirmed that its current generation, 12.7 Tbps switching silicon is already being used by numerous commercial customers, including some of the biggest cloud provider networks.
Innovium shipped over one million 400G ports in 2020
Innovium raises $170 million for its switching silicon
Marvell completes acquisition of Inphi
Marvell Technology completed its previously announced acquisition of Inphi Corporation. The combination creates a U.S. semiconductor powerhouse positioned for end-to-end technology leadership in data infrastructure.
Marvell also announced that Dr. Ford Tamer has been appointed to the Board of Directors of Marvell. Tamer served as Inphi’s President and Chief Executive Officer for more than nine years. Under Dr. Tamer’s stewardship, Inphi became the trusted market leader for electro-optics solutions for cloud and telecom operators, increasing revenue from these customers more than 20 times during his tenure, to an annual run rate of about $750 million. Prior to Inphi, Dr. Tamer served as CEO of Telegent Systems. Previous to this, he was Senior Vice President and General Manager of Broadcom’s Infrastructure Networking Group, which he grew 5-fold to $1.2 billion in revenue within five years.
The cash and stock transaction was valued at approximately US$10 billion, consisting of $66 in cash and 2.323 shares of stock of the combined company for each Inphi share.
Inphi’s high-speed electro-optics target data centers as well as wired and wireless carrier networks. The product portfolio includes Inphi transimpedance amplifiers (TIAs); drivers for 100G to 600G coherent optics; optical PHYs for signal recovery, retiming, grooming, error correction and gearbox operations; its COLORZ transceivers based on silicon photonics for 80/120km DWDM connectivity in a QSFP28 form factor; and its Canopus coherent Digital Signal Processors (DSPs)
Marvell said that by combining its storage, networking, processor, and security portfolio with Inphi’s electro-optics interconnect platform, the combined company will deliver end-to-end technology leadership in data infrastructure.
“Our acquisition of Inphi will fuel Marvell’s leadership in the cloud and extend our 5G position over the next decade,” said Matt Murphy, president and CEO of Marvell. “Inphi’s technologies are at the heart of cloud data center networks and they continue to extend their leadership with innovative new products, including 400G data center interconnect optical modules, which leverage their unique silicon photonics and DSP technologies. We believe that Inphi’s growing presence with cloud customers will also lead to additional opportunities for Marvell’s DPU and ASIC products.”
“Marvell and Inphi share a vision to enable the world’s data infrastructure and we have both transformed our respective businesses to benefit from the strong secular growth expected in the cloud data center and 5G wireless markets” said Ford Tamer, President and CEO of Inphi. “Combining with Marvell significantly increases our scale, accelerates our access to the next generations of process technology, and opens up new opportunities in 5G connectivity.”
Marvell also stated that intends to reorganize the combined company so that it will be domiciled in the United States, creating a U.S. semiconductor powerhouse with an enterprise value of approximately $40 billion. Upon closing, Ford Tamer, Inphi’s President and CEO, will join Marvell’s Board of Directors.
https://www.marvell.com/announcements/marvell-to-acquire-inphi.html
