Santa Clara-Based Marvell to Buy Intel Business for $600 Million

Santa Clara, Calif. -- Marvell Technology Group, a Santa Clara-based make rof semiconductor products, said on Tuesday that it will pay $600 million to acquire the communications and application processor business of Santa Clara-based Intel. Marvell said that the deal, expected to close in 4-5 months, will give it a strong presence in the growing market for processors used in smart handheld devices. The news sent shares of Marvell tumbling nearly 15%, closing at $44.14. Intel's communications and application processor business, which employs about 1,400, develops and sells processors for handheld devices, including smart phones and personal digital assistants. The vast majority of the the affected employees are expected to transfer to Marvell. Sehat Sutardja, Marvell's chairman, president and CEO, said that the acquisition gives his company "a tremendous opportunity to become a long-term leading supplier in the cell phone and consumer electronics market segments." Marvell has worked closely with Intel on several projects over the past six years.
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