Cavium Networks Acquires MontaVista Software for $50 Million

Strategic Insights -

Cavium Networks, Inc., a leading provider of integrated semiconductor products, has acquired MontaVista Software, Inc., a company specializing in embedded Linux commercialization, for $50 million. The acquisition was sealed on November 10, 2009, and is expected to close in December 2009. The consortium of investors selling MontaVista Software includes prominent names such as Siemens Venture Capital, Intel Capital, and Samsung Ventures America.

Key Takeaways:

  • Cavium Networks will acquire MontaVista Software for $50 million, consisting of $16 million in cash and $34 million in Cavium Networks common stock.
  • The acquisition will enable Cavium to deliver compelling and differentiated solutions to the market by complementing its processor portfolio with software expertise.
  • MontaVista Software will retain its brand name and operate as a separate unit under Cavium Networks.
  • The transaction is expected to close in December 2009.
  • The consortium of investors selling MontaVista Software includes 12 major names, including Siemens Venture Capital, Intel Capital, and Samsung Ventures America.
  • This acquisition demonstrates Cavium Networks' commitment to expanding its offerings in the embedded Linux market.

Statistics:

  • Cavium Networks will pay $50 million for MontaVista Software, with $16 million in cash and $34 million in common stock.
  • The acquisition is expected to close in December 2009.
  • The consortium of investors includes 12 major names, such as Siemens Venture Capital and Intel Capital.
  • MontaVista Software will retain its brand name and operate as a separate unit under Cavium Networks.

Sources:

  • Datamonitor Financial Deals Tracker via COMTEX (Dec 18, 2009)
  • Announcement (November 10, 2009)
  • As of Monday, 12-14-2009 23:59, the latest Comtex SmarTrend(R) Alert