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Marvell Goes Soft

Marvell Technology Group Ltd. (Nasdaq: MRVL) has signed a deal to acquire software specialist Radlan Computer Communications Ltd., a move that increases the chipmaker's systems-level capabilities (see Marvell Acquires Radlan).

Expected to close within 60 days, the deal has Marvell paying Radlan shareholders $49.7 million in stock and cash, plus 1 million more shares if certain performance goals are met. Radlan shareholders also receive 500,000 warrants for Marvell stock, priced at $18.41. Marvell shares were trading at $18.68 late today.

Radlan specializes in prefab networking software, its flagship product being the OpENS line of Internet Protocol routing code (see Radlan Markets Router in a Box ). Its headquarters are in Tel Aviv, Israel, with U.S. operations based in Santa Clara, Calif.

From Marvell's side, the deal isn't that surprising. The company already owns 9 percent of Radlan, and Marvell's Ethernet-switch group has worked with Radlan for years. Moreover, both companies are developing ready-made switches that include all the necessary hardware and basic software; Marvell's version, in fact, uses Radlan's software (see Marvell's Ethernet Switch Kit).

Radlan has also done work for Marvell in the storage-networking and wireless areas, and Marvell plans to step up those activities, says Weili Dai, executive vice president and general manager of Marvell's communications business group.

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