Marvell Technology Group Ltd. said late Monday that it plans to buy Avera Semiconductor from Santa Clara, Calif.-based Global Foundries for $650 million in cash. Avera is the application-specific integrated circuit business of Global Foundries. “With their highly experienced design team and Marvell’s leading technology platform, we will be better positioned to capitalize on our expanding opportunity in wired and wireless infrastructure, starting immediately in the fast growing 5G base station market,” said Marvell Chief Executive Matt Murphy in a statement. Marvell, which expects to close the transaction by the end of January, said Global Foundries will also be eligible for an additional $90 million in cash “if certain business conditions are satisfied within the next 15 months.” Marvell shares rose 1.9% after hours, following a 3.9% drop to close the regular session at $21.74.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
Latest posts by Market Watch (see all)
- Target stores nationwide faced long lines and frustrated customers amid widespread cash register outage - June 15, 2019
- Think you’ve got the smarts to be a financial analyst? Take this quiz to find out. - June 15, 2019
- NewsWatch: Elizabeth Warren to introduce bill cancelling up to $50,000 in student debt for most borrowers - June 15, 2019