Chipmaker Marvell snapped up switch silicon vendor Innovium in an all-stock deal valued at $1.1 billion.

The acquisition adds to Marvell’s already extensive Ethernet switching portfolio, and the company expects Innovium’s intellectual property to benefit its recent acquisition of Inphi.

“Our acquisition of Innovium and its complementary offerings further extends Marvell’s leadership in the cloud,” Marvell CEO Matt Murphy said in a statement.

Innovium is a leading switch ASIC vendor, claiming approximately 30% of the overall market for merchant silicon to Broadcom’s 70% share.

At the heart of the deal is Innovium’s Teralynx switch portfolio, which is capable of 25.6 Tb/s of total switching throughput and is widely deployed by large networking vendors including Cisco.

In a statement, the company said the acquisition will allow the chipmaker to “immediately participate in the fastest growing segment of the switch market with a cloud-optimized solution.”

Marvell sees the acquisition as an opportunity to capitalize on the growing demand for merchant switch silicon especially among cloud providers. The company estimates the market will grow to $2 billion at a 15% compound annual growth rate by 2026.

However, the company expects Innovium to drive a $150 million in incremental revenue as early as the 2022 calendar year in part to a recent contract with a “tier-one” cloud provider. The chipmaker didn’t name the cloud provider in question.

As part of the purchase agreement, Innovium CTO and Founder Puneet Agarwal will join Marvell, while the company’s CEO Rajiv Khemani will serve as an advisor to Marvell post close.