Investing.com -- Shares of Marvell Technology Inc (NASDAQ: MRVL ) climbed 3.5% in after-hours trading following the announcement that the company has agreed to sell its Automotive Ethernet business to Infineon Technologies AG (OTC: IFNNY ) for $2.5 billion. The sale, which is expected to close within the calendar year 2025, is projected to generate revenue in the range of $225-250 million for fiscal 2026.

The transaction includes Marvell’s Brightlane® Automotive Ethernet portfolio, which has been a significant part of the company’s expansion into data infrastructure semiconductor solutions. Marvell’s CEO, Matt Murphy, highlighted the company’s transformation into a leading provider in this space, with data center end markets contributing to 75% of its consolidated revenue in the fiscal fourth quarter of 2025. Murphy expressed confidence that the deal would yield a strong financial return for shareholders and that Infineon’s platform would ensure continued growth and success for the Automotive Ethernet business.

The decision to divest the Automotive Ethernet business aligns with Marvell’s strategy to focus on its core data infrastructure market. The sale to Infineon, a company with a robust presence in automotive applications, is expected to enhance the value and future prospects of the Automotive Ethernet portfolio.

Marvell’s Board of Directors has approved the definitive agreement, which is now subject to customary closing conditions and regulatory approvals. The market’s positive reaction to this strategic move reflects investor confidence in Marvell’s ability to streamline operations and capitalize on its strengths within the data infrastructure sector.

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