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12 January 2012
Marvell Semiconductor announced that it has completed the acquisition of Xelerated, a Swedish vendor of network processors and programmable Ethernet switching silicon. 
Although the sum Marvell paid for Xelerated was not made public, it is thought to be around $75 million, according to Jag Boloria, senior analyst at The Linley Group. Founded in 2000, Xelerated had raised a total of $85 million in several funding rounds.
"Programmable wire speed processing and advanced traffic management are two of Xelerated’s strongest IP assets and are essential for service provider deployment of their enterprise and subscriber services, " said Eva Lindqvist, CEO of Xelerated. "Joining the Marvell family is a fantastic opportunity for us to exploit the full potential of our technology and provide more comprehensive end-to-end solutions to our customers."
From Marvell’s point of view, Xelerated’s product range complements its own portfolio of packet processors, ARM-based SoCs, wireless and low-power physical layer devices used in infrastructure, data centre and enterprise networking equipment. Marvell said in a statement that the synergy between the two companies "sets the stage for significant progress in the way service providers build out the mobile Internet".
Xelerated is also important to Marvell in the rapidly growing 100Gbps market, being one of just two firms sampling 100Gbps network processors.  Interestingly, Marvell also has a long-standing relationship with EZchip, the other vendor in that space.  Officially, Marvell says it "will continue to work with EZChip on NP-4 and NP-5 processors and is committed to the long term relationship with EZChip".
By Pauline Rigby