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Marvell Technology buys Cavium for $6 billion

Marvell Technology Group and Cavium has entered into a definitive agreement, under which Marvell will acquire all outstanding shares of Cavium in a USD 6 billion deal.

According to the agreement, Marvell will pay USD 40.00 per share in cash and 2.1757 of its shares for each Cavium share. The transaction combines Marvell's portfolio of HDD and SSD storage controllers, networking solutions and wireless connectivity products with Cavium's portfolio of multi-core processing, networking communications, storage connectivity and security solutions. "This is an exciting combination of two very complementary companies that together equal more than the sum of their parts," said Marvell President and Chief Executive Officer, Matt Murphy. "This combination expands and diversifies our revenue base and end markets, and enables us to deliver a broader set of differentiated solutions to our customers. Syed Ali has built an outstanding company, and I'm excited that he is joining the Board. I'm equally excited that Cavium's Co-founder Raghib Hussain and Vice President of IC Engineering Anil Jain will also join my senior leadership team. Together, we all will be able to deliver immediate and long-term value to our customers, employees and shareholders," Murphy continues. The transaction is expected to generate at least USD 150 to USD 175 million of annual run-rate synergies within 18 months post close and to be significantly accretive to revenue growth. The deal is expected to close in mid-calendar 2018. "Our potential is huge. We look forward to working closely with the Marvell team to ensure a smooth transition and to start unlocking the significant opportunities that our combination creates," said Cavium Co-founder and Chief Executive Officer, Syed Ali.

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March 15 2024 2:25 pm V22.4.5-2
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