Marvell Technologies said Tuesday that it has entered an agreement to acquire networking component provider Innovium in an all-stock deal valued at $1.1 billion. Marvell's key interest in Innovium revolves around its switching architecture for cloud and edge data centers, which Marvell intends to use to bolster its networking portfolio for cloud computing customers.

Marvell's purchase of Innovium marks its second acquisition on less than a year that's focused on the networking space. In October, Marvell bought Inphi, a developer of optical networking chips used in cloud data centers and by wired and wireless carrier networks for 5G infrastructure, in a $10 billion deal that signaled further consolidation in the semiconductor industry.

Marvell said its acquisition of Inphi would create a semiconductor "powerhouse" with an enterprise value of roughly $40 billion. Technologically, Marvell planned to combine its storage, networking, processor, and security portfolio, with Inphi's electro-optics interconnect platform.

Going forward, Marvell plans to integrate Innovium and Inphi products to develop performance optimized switch silicon for use in hyperscale data centers.

Marvell also announced that Innovium was chosen as a key technology supplier by a Tier 1 cloud customer, and that the deal will spur a significant revenue ramp in calendar 2022.

Innovium is also in talks with several other cloud data center customers in building out their future network architectures, Marvell said.

"Our acquisition of Innovium and its complementary offerings further extends Marvell's leadership in the cloud, and I am excited that Innovium has secured significant share at a marquee cloud customer," said Marvell CEO Matt Murphy. "Innovium has established itself as a strong cloud data center merchant switch silicon provider with a proven platform, and we look forward to working with their talented team who have a strong track record in the industry for delivering multiple generations of highly successful products."

Marvell expects the acquisition of Innovium to add approximately $150 million in incremental revenue next fiscal year.