Infineon to Buy Marvell Auto Networking Unit for $2.5 Billion

Infineon Technologies AG signed a deal to buy Marvell Technology Inc.’s automotive networking business for $2.5 billion in an all-cash deal to strengthen its industry-leading car unit.

The acquisition of Marvell’s Automotive Ethernet division is expected to close this year and will expand Infineon’s presence in a technology that’s key for self-driving cars, the German company said in a statement Monday. The unit is poised to generate revenue of $225 million to $250 million this year, with a gross margin of around 60%.

Infineon shares fell 2.2% to €24.57 at 9:16 a.m. in Frankfurt. Marvell shares in the US ...