Marvell Completes Sale of Automotive Ethernet Business to Infineon for $2.5B

Marvell Technology has completed the sale of its Automotive Ethernet business to Infineon Technologies for $2.5B in an all-cash transaction. The business contributed mid-single-digit millions of dollars in revenue during Marvell's third quarter of fiscal 2026 and is expected to contribute $225M-$250M in revenue for the fiscal year. The transaction is expected to have no material impact on Marvell's non-GAAP earnings per share.

Infineon Technologies AG has completed the acquisition of Marvell Technology Inc.'s Automotive Ethernet business in an all-cash transaction valued at $2.5 billion. The deal closed on August 14, 2025, marking a significant strategic move for Infineon as it expands its presence in the automotive technology sector [1].

The acquisition includes Marvell's Brightlane® Automotive Ethernet portfolio and related assets, which are expected to contribute $225 million to $250 million in revenue for Marvell's fiscal year 2026. The transaction is expected to have no material impact on Marvell's non-GAAP earnings per share [2].

Infineon will use existing liquidity and incur additional debt to fund the acquisition. The deal was advised by legal firms Morrison & Foerster LLP and Wilson Sonsini Goodrich & Rosati, P.C., with J.P. Morgan SE acting as the financial advisor and fairness opinion provider. Deutsche Bank and JP Morgan were also involved in the financing of the acquisition [1].

Following the closure of the transaction, Marvell's Automotive Ethernet business will become part of Infineon's Automotive division. This move is part of Infineon's broader strategy to strengthen its position in the automotive market, which is expected to grow significantly in the coming years.

Marvell expects to report its Q2 FY2026 results and Q3 guidance on August 28, 2025, providing further insights into the impact of the divestiture on its financial performance.

References:
[1] https://www.marketscreener.com/news/infineon-technologies-ag-completed-the-acquisition-of-automotive-ethernet-business-from-marvell-tech-ce7c51d9dd8ff220
[2] https://www.stocktitan.net/news/MRVL/marvell-completes-divestiture-of-automotive-ethernet-business-to-4dx5lfrc9oqp.html