Marvell Technology Group (Nasdaq:MRVL) is acquiring Israeli startup RADLAN Computer Communications for $54 million.
The Sunnyvale, California-based company said it signed a definitive agreement to acquire RADLAN, a RAD group company that makes embedded networking software solutions.
Marvell already held 9% of RADLAN's shares. It is now buying the rest of its equity for shares and cash according to a company value of $54 million. Up to about 1 million more Marvell shares will be reserved for future issuance upon satisfaction of performance goals, the U.S. company said in a statement.
Additionally, Marvell will issue 0.5 million warrants to RADLAN's shareholders exercisable at $18.41, Marvell said.
RADLAN president and CEO Jacob Zankel said the startup has a backlog of over $30 million. Its revenues in 2002 were about $8 million.
Its customers include Alcatel (NYSE:ALA), Lucent Technologies (NYSE:LU), Marvell itself, Marconi (Nasdaq:MONI), and Broadcom Corporation (Nasdaq:BRCM).
This is Marvell's second Israeli venture, after buying Galileo in October 2000.
RADLAN was established in 1998 by hi-tech entrepreneurial brothers Yehuda and Zohar Zisapel. To date it has raised some $40 million. The company's backlog of orders exceeds $30 million, and its revenues in 2002 are estimated to be around $8 million. It employs 150 people at offices in Israel, Texas and California.