Innovium

History

2021: Marvell Technology bought Innovium for $1.1 billion

In early August 2021, Marvell Technology announced the acquisition of Innovium, a chip company for network equipment, for $1.1 billion. The deal is an attempt by the buyer to capture a large market share of chips used to power the largest and most complex data centers.

According to Marvell CEO Matt Murphy, the market for Ethernet switches in data centers is Innovium's core business, which could double to $2 billion over the next five years.

The bulk of this growth of $1 billion to $2 billion comes from hyperscaling, while ordinary data centers will be at a low level. But hyperscales are probably up 20% a year, maybe 30% a year, so that's a pretty big increase, said Matt Murphy.

Marvell Technology acquired Innovium for $1.1 billion

Innovium produces network chips that act like managers and send data quickly and efficiently to various parts of the data centers. Innovium's Teralynx chips compete with Broadcom, which manufactures products that perform similar functions. Adding Inovium products to Marvell's portfolio will further expand the range of chips it can offer to its customers in data centers.

Marvell said Innovium chips were chosen by a large American cloud computing customer, which will provide a significant amount of new revenue in 2022.

The company said it expects $150 million in additional revenue in fiscal 2022, and the deal is expected to close by the end of 2021. Innovium co-founder and Chief Technical Officer Punit Agrarwal will move to Marvell after the deal closes, and Executive Director Rajiv Hemani will serve as an adviser.^[1]

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