Infineon Technologies, a company from Germany that makes semiconductors, plans to purchase a part of Marvell Technology. This part is the automotive Ethernet division. Infineon will spend $2.5 billion in cash for the completion of this purchase.
The reason cited behind the acquisition is twofold. The first reason is to make Infineon’s microcontroller products better, and the second is building a robust place for itself within the automotive space. The division that Infineon is acquiring is anticipated to bring in revenue that is likely to fall in the range of $225 million to $250 million by the end of the year 2025.
It is also projected to have a gross margin of nearly 60%. Both companies are targeting to finalize this transaction before the year ends.
