Semiconductor firm Marvell Technology Group Ltd. said Monday it has reached a deal to acquire Avera Semiconductor LLC, the custom-chip business of GlobalFoundries Inc.

The acquisition price came in at $650 million up front in cash with a potential earn-out of up to $90 million depending on the company’s performance over the next 15 months.

Previously owned by International Business Machines Corp. and acquired by GlobalFoundries in 2015, Avera Semiconductor makes application-specific integrated circuit chips that are used in wired and wireless infrastructure. The acquisition includes a transfer of Avera’s complete business along with system manufacturer agreements and intellectual property, the latter arguably the most important part of the deal.

Avera is said to have executed more than 2,000 complex designs in its 25-year history and built a significant business, supported by about 800 technologists. Its product lineup includes analog, mixed-signal and system on a chip design as well as a portfolio that includes high-performance embedded memory and advanced packaging technology. Marvell said that the acquisition will help it become the world’s leading supplier of infrastructure semiconductor solutions.

“Our acquisition of Avera enables us to offer the complete spectrum of product architectures spanning standard, semi-custom to full ASIC solutions,” Matt Murphy, president and chief executive officer of Marvell, said in a statement. “With their highly experienced design team and Marvell’s leading technology platform, we will be better positioned to capitalize on our expanding opportunity in wired and wireless infrastructure, starting immediately in the fast-growing 5G base station market.”

The deal also includes a long-term supply agreement with GlobalFoundries.

Marvell’s last big acquisition came in November 2017 when it acquired Cavium Inc. for $6 billion, a move described at the time as the consolidation of the semiconductor space. It also acquired Aquantia Inc., a manufacturer of Ethernet technology, for $452 million earlier this month.

The Avera deal, subject to regulatory approvals and other customary closing conditions, is expected to close in Marvell’s 2020 fiscal year.

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