Marvell Acquires Avago's Printer ASICs Business
Marvell has entered into a definitive agreement to acquire the printer semiconductor business of Avago Technologies, the company formed from Agilent Technologies' divestiture of its semiconductor products business to Kohlberg Kravis Roberts & Co. (KKR) and Silver Lake Partners. KKR acquired the business in Dec. 2005 for $2.66 billion.
Under the terms of the agreement, Marvell will pay $240 million in cash for the printer ASIC business. Marvell may pay an additional $35 million upon certain defined milestones being achieved.
Avago says the sale enables the company to further concentrate resources in its core business. The company anticipates using the net cash proceeds from the sale to further reduce the debt related to its buyout from Agilent.
With the spin-off from Agilent, Avago Technologies became the world's largest privately held semiconductor company, with 6,500 employees and net revenue of $1.8 billion in fiscal 2005. Avago's printer ASICs business supplies SOC and system-level solutions for both inkjet and laser jet printer systems.