Marvell Acquires Radlan

Marvell acquires Radlan Computer Communications Ltd., a leading provider of embedded networking software for $49.7M in cash and stock

February 6, 2003

1 Min Read

SUNNYVALE, Calif. -- Marvell(R) (NASDAQ: MRVL), a technology leader in the development of extreme broadband communications and storage solutions, today announced that it has signed a definitive agreement to acquire RADLAN Computer Communications Ltd., a leading provider of embedded networking software. "Marvell's industry-leading, high-performance mixed-signal ICs combined with RADLAN's networking infrastructure drivers, interfaces and software modules allows us to offer a new class of silicon solutions to our customers. The combined products will provide best-in-class, cost-effective time-to-market solutions for networking communications products," stated Dr. Sehat Sutardja, Marvell's President and Chief Executive Officer. Our silicon solution strategy enables our customers to build complex system solutions and bring differentiated products to market." Under the terms of the acquisition agreement, Marvell, who currently owns 9% of RADLAN, will issue a combination of cash and shares of Marvell common stock valued at $49.7 million based on yesterday's closing price of Marvell in exchange for the remaining outstanding shares of RADLAN capital stock and employee stock options. Up to approximately 1.0 million additional shares of Marvell common stock will be reserved for future issuance upon satisfaction of certain performance goals. Additionally, Marvell will issue 0.5 million warrants to RADLAN's shareholders exercisable at $18.41. The merger transaction is expected to close within sixty days and will be accounted for under the purchase method of accounting. The boards of directors of both companies have approved the merger, which awaits the satisfaction of regulatory requirements and other customary closing conditions. Marvell Technology Group Ltd.

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