Marvell Technology Group has acquired Avera Semiconductor from GlobalFoundaries. The deal is most likely to speed track design, development, and deployment of the upcoming 5G mobile internet and telecommunications equipment business.
The total valuation of the deal sits at $740 million. The valuation includes Marvell paying GlobalFoundaries $650 million in cash upfront for Avera. The remaining $90 million will be paid based on the company achieving specific business milestones in the next 15 months. However, given the high interest of telecommunication companies and the accelerated pace of deployment of the 5th Generation of mobile communications, the payout is virtually guaranteed.
Marvell confirmed it has specific interest in the Application Specific Integrated Circuit (ASIC) business of GlobalFoundaries. Hence, it entered into definitive and goal-based purchase agreements for Avera Semiconductor. The acquisition brings Avera’s leading custom design capabilities into Marvell. Combined with the latter’s advanced technology platform and scale, Marvell now effectively becomes a leading ASIC supplier for wired and wireless infrastructure.
Marvell was hereto offering primarily standardized product portfolio of wired and wireless products that significantly improved the deployment time of communication platforms. However, Avera specializes in advanced fully customized development solutions. Avera was previously part of IBM’s Microelectronics business. It was launched as a wholly owned subsidiary of GlobalFoundaries in November last year. Till date, the company claims to have successfully completed over 2,000 complex designs. The organization employs about 800 engineers and technologists.
In addition to the manpower, Avera brings along with it, innovative design competencies in analog, mixed-signal and SoCs. Additionally, it has developed a potent IP portfolio including high-speed SerDes, high-performance embedded memory and advanced packaging technology. Besides technological advances, the company also has strong business relations with quite a few leading wired and wireless networking enterprises.
Besides the aforementioned advantages of acquiring Avera, Marvell has also managed to leapfrog into the fast-growing next-generation cloud data centers business. Combined with Marvell’s complete silicon platforms that enable a wide range of digital processing including baseband, processors, Ethernet switches and PHYs, the new acquisition will certainly fast-track the deployment of next generation of mobile communications.
5G mobile internet broadband and wireless communications platform goes well beyond boosting the download and upload speed. The next-generation of wireless communication takes into account the rising number of Internet of Things (IoT) and other ultra-low-power electronics that need dependable internet connectivity. Hence, this platform requires reengineering several aspects, including hardware and bandwidth management. With the acquisition of Avera Semiconductor, Marvell Technology Group appears to have gained quick and efficient solutions to several challenges.