Innovium, a US-based developer of data centre network infrastructure technology backed by mobile chipmaker Qualcomm, has agreed to a $1.1bn acquisition by infrastructure semiconductor company Marvell.
The all-stock transaction, consisting of just over 19 million shares, remains subject to customary closing conditions and is expected to close by the end of this year.
Innovium’s networking technology for data centres powers cloud and edge applications. Its Teralynx software and scalable switches can handle data transfer speeds of up to 25.6 terabits per second (Tbps) and offers low latency, and could cope with more than 100Tbps.
The acquisition will allow Marvell to enter the cloud-optimised switch market. Puneet Agarwal, founder and chief technology officer of Innovium, will join Marvell following the merger, while chief executive will serve as an adviser.
Innovium has raised approximately $335m in funding.
Qualcomm Ventures, the investment arm of Qualcomm, participated in a $170m round in July 2020 together with Premji Invest, DFJ Growth, Greylock Partners, Capricorn Investment Group, WRVI Capital, Redline Capital, S-Cubed Capital, DAG Ventures, funds and accounts managed by BlackRock and undisclosed investors.
Qualcomm Ventures also took part in a $77m series D round in 2018, investing alongside Paxion Capital, Walden Riverwood’s Everbright fund, Capricorn, S-Cubed Capital and Greylock.
Greylock led a $38.3m series C round in 2017, when Qualcomm Ventures, Walden Riverwood, Capricorn and S-Cubed Capital also supplied cash.
Innovium previously secured a combined $50m in series A and B financing in 2015 from investors including Qualcomm Ventures, but only disclosed the money the following year.
