Marvell Buys Printer-Chip Line

The deal is valued at $240 million.
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Marvell Technology

(MRVL) - Get Report

agreed to acquire the printer-semiconductor business of Avago Technologies, a privately held chip firm, for $240 million.

Avago provides a range of analog, mixed-signal and optoelectronic components and subsystems to more than 40,000 customers worldwide. Avago's printer business supplies products for both inkjet and laser-jet printer systems.

Marvell expects to close the purchase within 60 days. Marvell, a chipmaker, may pay $35 million more if certain milestones are met.

Additionally, Marvell said it might record a charge for purchased in-process research-and-development expenses after the deal closes, but the amount of any possible charge hasn't yet been determined. Excluding the amortization and write-off of acquired intangible assets and stock-based compensation, the transaction should add to Marvell's earnings per share.

"With this transaction, we are very excited to have this talented and experienced team join the Marvell family," said Sehat Sutardja, Marvell's president and CEO. "We also look forward to the opportunity to further expand the performance and capabilities of these advanced printer solutions by leveraging our broad portfolio of complementary high-performance technology."

Shares of Marvell were down $1.63, or 2.6%, to $62.09.