NXP to buy Marvell's WiFi, Bluetooth business for US$1.76 billion

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REUTERS: Chipmaker NXP Semiconductors NV said on Wednesday it will buy Marvell Technology Group Ltd's wireless connectivity business for US$1.76 ...

REUTERS: Chipmaker NXP Semiconductors NV said on Wednesday it will buy Marvell Technology Group Ltd's wireless connectivity business for US$1.76 billion in cash.

NXP will sell Marvell's connectivity products such as WiFi and Bluetooth along with its edge computing platforms to its clients in industrial, automotive and communication infrastructure markets.The unit brought in US$300 million in revenue for Marvell in fiscal 2019 and NXP expects that to double by 2022.

The deal, expected to close by the first quarter of 2020, will add to NXP's adjusted operating profit in the quarter after the transaction closes. Last year, chipmaker Qualcomm Inc walked away from a US$44 billion deal to buy NXP after failing to secure Chinese regulatory approval amid a bitter Sino-U.S. trade spat.

Shares of Marvell rose 3.84per cent at US$22.17 before the bell, while those of NXP were down marginally.

 

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