Marvell Technology to Acquire Aquantia for $452 Million

Semiconductor maker Marvell (MRVL) - Get Report  reached an agreement to purchase ethernet connectivity company Aquantia (AQ) for $13.25 per share, or $452 million. 

The purchase price represents a 39% upside from Aquantia's closing price Friday of $9.56 per share. Both companies' boards have approved the deal. 

"Our acquisition of Aquantia will fuel Marvell's leadership in the transformation of the in-car network to high-speed Ethernet over the next decade," said Matt Murphy, president and CEO of Marvell. "At the same time, Aquantia extends our reach in the rapidly emerging Multi-Gig segment of network infrastructure and creates a leading end-to-end Ethernet connectivity portfolio."

The company also said the acquisition complements Marvell's portfolio of copper and optical physical layer product offerings and extends ts position in the Multi-Gig 2.5G/5G/10G ethernet segments. 

"Marvell and Aquantia share a vision where the network - whether in an autonomous vehicle, an enterprise application or in cloud infrastructure - can seamlessly power the data economy," said Faraj Aalaei, chairman and CEO of Aquantia. "This is a fantastic opportunity as our customers will benefit from Marvell's global scale and expanding footprint in Multi-Gig network applications."

Aquantia shares are up 36% in trading while Marvell is declining, along with the rest of the semiconductor sector, 1.8%.