Cavium Networks acquires MontaVista Software from venture capital firms

Cavium Networks, Inc. has acquired MontaVista Software, Inc. Both the companies are based in the US.

Cavium is a provider of integrated semiconductor products, while MontaVista Software is engaged in embedded Linux commercialization.

Announcement (November 10, 2009):

Cavium has signed a definitive agreement to acquire MontaVista Software for $50 million, comprised of approximately $16 million in cash and approximately $34 million in Cavium Networks common stock.

Following the acquisition, MontaVista Software will run as a separate operating unit and will retain the MontaVista brand name.

Earlier, MontaVista Software had secured venture funding from Siemens Venture Capital GmbH, U.S. Venture Partners, Alloy Ventures, Inc., Samsung Ventures America, Cipio Partners, Intel Capital, RRE Ventures, Aplix Corporation, NEC Corporation, International Business Machines Corporation, Sony Corporation of America and China Development Industrial Bank.

The transaction is expected to close in December 2009.

Deal Value (US$ Million) 50
Deal Type                Acquisition
Sub-Category             Majority Acquisition
Deal Status              Completed: 2009-12-18

Deal Participants

Target (Company)   MontaVista Software, Inc.
Acquirer (Company) Cavium Networks, Inc.
Vendor 1 (Company) China Development Industrial Bank
Vendor 2 (Company) Sony Corporation of America
Vendor 3 (Company) Aplix Corporation
Vendor 4 (Company) NEC Corporation
Vendor 5 (Company) International Business Machines Corporation

Deal Rationale

The acquisition will complement Cavium's market leading processor portfolio with software expertise and will enable it to deliver compelling and differentiated solutions to the market.

Related terms: acquisition, bank, china, industrial, linux, market, products, software, venture capital