Monday, October 16, 2006

Marvell Considers Financing Options for Intel Unit Acquisition

Marvell Technology Group said it intends to meet with potential lenders in connection with the private acquisition financing of Intel's communications and application processor business. The proposed acquisition financing will be in the form of a senior term loan facility in an aggregate principal amount of up to $500 million. Marvell expects that the net proceeds from the term loan facility, together with existing cash on hand, will be used to pay the purchase price for the acquisition, related transaction costs, and advance payments for products under a supply agreement with Intel.
http://www.marvell.com

  • In June 2006, Marvell Technology Group agreed to acquire Intel's communications and application processor business for $600 million in cash plus the assumption by certain liabilities. Intel has the option to take up to $100 million of the $600 million purchase price in Marvell common stock.


  • Intel's communications and application processor business develops and sells processors for handheld devices including smart phones and personal digital assistants. The business' processors, based on Intel XScale technology, include the Intel PXA9xx communications processor, codenamed "Hermon," which powers Research in Motion's (RIM) Blackberry 8700 device. The Intel PXA27x applications processor, codenamed "Bulverde," is used in the Palm Treo smart phone, the Motorola Q and other devices. The business is run by approximately 1,400 employees. It is expected that the vast majority of these employees will become employees of Marvell.

0 comments:

Post a Comment

See also