Comments on: Marvell Purchasing Intel's XScale Business
Marvell Technology Group, and Intel Corporation today announced that they have signed an agreement for Intel to sell its communications and application processor business to Marvell for a purchase price of $600 million. The planned sale will give Marvell a strong presence in the growing market segment for processors used in smart handheld devices.
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As far as I know.. Marvel bought former DSPC not XSCALE...
DSPC is an Israeli company that was selling base band processors (the hart of a mobile phone) - mostly to japanese market. It has nothing to do with XSCALE.
Intel bought DSPC for $1.6B and now selling for $0.6B - I think they forget $1B..
Moshe
RE: As far as I know.. Marvel bought former DSPC not XSCALE...
mbuhboot said It has nothing to do with XSCALE
It will be a good idea if you read the article above and the following link:
http://www.intel.com/pressroom/archive/releases/20060627corp.htm
Extract:
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.
Thankfully you are correct in saying that this division was based on Intel's purchase of DSPC.
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Intel makes a smart move
This planned sale does not impact the ability of other Intel businesses in the networking and storage market segments to continue to use ARM-based, Intel XScale processors. Those Intel businesses will be able to continue licensing chip designs directly from ARM Holdings PLC and modifying the designs for their needs.
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So they (Intel) get rid of ~ $250 million in revenue but gain $600 million in cash for a processor product line and customer info being sold to Marvell. PLUS they retain their rights to produce / use XScale processing technology in other embedded products. Pretty sweet deal for Intel.
I talked with a friend of mine who works in this group at Intel. No surprise to them of course, but now they have to work through all the details about who gets to stay and under what circumstances.
Marvell pays > 2x the revenue stream for the Intel unit and gains inroads into important customers (Palm, Motorola, others) for their core market segments. They grow revenue only about 15% so they must think the customer base is worth quite a bit.
Marvell recent numbers from their website:
( http://www.marvell.com/press/pressNewsDisplay.do?releaseID=548 )
Net revenue for the year ended January 28, 2006 was $1,670.3 million, an increase of 36.4% over net revenue of $1,224.6 million for the year ended January 29, 2005. Net income under GAAP was $331.4 million, or $1.05 per share (diluted), for the year ended January 28, 2006, compared with a net income under GAAP of $141.7 million, or $0.47 per share (diluted), for the year ended January 29, 2005.
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Palm Vx -----> LONG WAIT -----> Palm T|X