Marvell to Acquire the Hard Disk Drive Controller Business of QLogic
Sunnyvale, California (August 29, 2005) – arvell® (NASDAQ: MRVL), the leader in development of storage, communications, and consumer silicon solutions, today announced a definitive agreement to acquire the Hard Disk and Tape Drive Controller semiconductor business of QLogic Corporation.
“We are very excited to have this talented team join the Marvell family,” stated Dr. Sehat Sutardja, Marvell's President and CEO. “Additionally, these proven products and technologies will further expand our world class capabilities as the leader in the storage electronics market.”
Under the terms of the definitive agreement, Marvell will issue a combination of $180 million in cash and shares of Marvell common stock valued at $45 million. The acquisition is expected to close within sixty days following the satisfaction of regulatory requirements and other customary closing conditions. On a pro forma basis excluding the amortization and write-off of acquired intangible assets and stock-based compensation, the transaction is expected to be accretive to Marvell’s earnings per share.
Marvell (NASDAQ: MRVL) is the leader in development of storage, communications and consumer silicon solutions. The Company’s diverse product portfolio includes switching, transceiver, communications controller, wireless, and storage solutions that power the entire communications infrastructure, including enterprise, metro, home, and storage networking. As used in this release, the terms “Company” and “Marvell” refer to Marvell Technology Group Ltd. and its subsidiaries, including Marvell Semiconductor, Inc. (MSI), Marvell Asia Pte Ltd (MAPL), Marvell Japan K.K., Marvell Taiwan Ltd., Marvell International Ltd. (MIL), Marvell U.K. Limited, Marvell Semiconductor Israel Ltd. (MSIL), RADLAN Computer Communications Ltd., and SysKonnect GmbH. MSI is headquartered in Sunnyvale, Calif., and designs, develops and markets products on behalf of MIL and MAPL. MSI may be contacted at (408) 222-2500 or at www.marvell.com.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995:
This release contains forward-looking statements based on projections and assumptions about our products and our markets. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "may," "will," "should," and their variations identify forward-looking statements. Statements that refer to, or are based on projections, uncertain events or assumptions also identify forward-looking statements. These statements are not guarantees of results and are subject to risks and uncertainties. Some risks and uncertainties that may adversely impact the statements in this release include, but are not limited to, the risk we may not realize the anticipated benefits of the acquisition or the anticipated benefits of the products and technology, the effect of the acquisition on our earnings per share, the timing of the completion of the acquisition and risks associated with acquisitions, including the ability to successfully integrate the acquired technologies or operations, potential diversion of management’s attention and our ability to retain key employees of acquired businesses. For other factors that could cause Marvell's results to vary from expectations, please see the sections titled “Additional Factors That May Affect Future Results” in Marvell's annual report on Form 10-K for the fiscal year ended January 29, 2005 and Marvell’s subsequent reports on Form 10-Q. We undertake no obligation to revise or update publicly any forward-looking statements.
Marvell® and the Marvell logo are trademarks of Marvell. All other trademarks are the property of their respective owners.