Marvell Pays $240M for Avago’s Printer Biz

Online staff -- Electronic News, 2/21/2006

Sunnyvale, Calif.-based storage, communications and consumer silicon solutions supplier Marvell today announced a definitive agreement to acquire the printer semiconductor business of Avago Technologies for $240 million in cash.

Avago Technologies is a privately held semiconductor company after being sold last December by Agilent Technologies Inc. with 6,500 employees and net revenue of $1.8 billion in fiscal 2005.

Avago provides an extensive range of analog, mixed-signal and optoelectronic components and subsystems to more than 40,000 customers worldwide. Avago's printer ASICs business is a leading supplier of system-on-chip and system level solutions for both inkjet and laser jet printer systems, according to the company.

"With this transaction, we are very excited to have this talented and experienced team join the Marvell family," said Sehat Sutardja, Marvell's president and CEO, in a statement. "We also look forward to the opportunity to further expand the performance and capabilities of these advanced printer solutions by leveraging our broad portfolio of complementary high performance technology."

The acquisition is expected to close within 60 days following the satisfaction of regulatory requirements and other closing conditions.

Also part of the agreement, Marvell may pay an additional $35 million upon certain defined milestones being achieved.

Upon closing, Marvell may record a one-time charge for purchased in-process R&D expenses, which has not yet been determined.

This is the second recent acquisition for Marvell. Last December, the company acquired IP-based, end-to-end networking solutions and services provider UTStarcom Inc.’s system-on-chip semiconductor design business division for $24 million in cash.