Infineon gains in early trade after Marvell's deal
ReutersApr 8, 2025 6:38 AM
Infineon's IFXGn.DE shares rise around 4% in early Frankfurt trade after the chipmaker said on Monday it would buy Marvell Technology's MRVL.O automotive ethernet business for $2.5 billion in cash
"Should be a good fit strategically. Nice margin contribution," a local trader says
The automotive ethernet business is expected to generate revenue between $225 mln-$250 mln in 2025, with a gross margin of nearly 60%
Stifel notes that the implied multiple is high at about 10 times sales in 2025 and the deal adds to Infineon's net debt position
The broker points out, though, that this "strategic acquisition" will strengthen the company's Nr. 1 position in auto semis further
Infineon's stock has fallen 17% since April 2 close
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