German chipmaker Infineon Technologies (IFXGn.DE) said on Monday it would buy Marvell Technology's (MRVL.O) automotive ethernet business for about $2.5 billion in cash, to expand its microcontroller segment.
The automotive ethernet business, which will become a part of Infineon's automotive division, is expected to generate revenue between $225 million and $250 million in the calendar year 2025, with a gross margin of nearly 60%.
Infineon has secured acquisition financing from banks and will incur additional debt to finance the deal and expects it to close this year.
