** Infineon's IFXGn.DE shares rise around 4% in early Frankfurt trade after the chipmaker said on Monday it would buy Marvell Technology's MRVL.O automotive ethernet business for $2.5 billion in cash
** "Should be a good fit strategically. Nice margin contribution," a local trader says
** The automotive ethernet business is expected to generate revenue between $225 mln-$250 mln in 2025, with a gross margin of nearly 60%
** Stifel notes that the implied multiple is high at about 10 times sales in 2025 and the deal adds to Infineon's net debt position
** The broker points out, though, that this "strategic acquisition" will strengthen the company's Nr. 1 position in auto semis further
** Infineon's stock has fallen 17% since April 2 close
(Reporting by Paolo Laudani)
((Paolo.laudani@thomsonreuters.com))
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