Marvell to acquire Inphi – accelerating growth in cloud and 5G infrastructure

The combined company, which will be domiciled in the US, will create a US semiconductor powerhouse with an enterprise value of approximately USD 40 billion. Under the terms of the definitive agreement, the transaction consideration will consist of USD 66 in cash and 2.323 shares of stock of the combined company for each Inphi share. Upon closing, Marvell shareholders will own approximately 83% of the combined company and Inphi stockholders will hold 17%. Inphi has built a high-speed data interconnect platform suited to meet the insatiable demand for increased bandwidth and low power for the cloud data centers and global networks of the future. The company’s high-speed electro-optics portfolio provides the connectivity fabric for cloud data centers and wired and wireless carrier networks, just as Marvell's copper physical layer portfolio does for enterprise and future in-vehicle networks. Combining Marvell's storage, networking, processor, and security portfolio, with Inphi's electro-optics interconnect platform, will see the creation of a powerhouse to be reckon with in data infrastructure. This transaction expands Marvell's addressable market, strengthens its customer base, and accelerates opportunities in hyperscale cloud data centers and 5G wireless infrastructure. In the official announcement, Matvell says that the combined scale will provide more resources and capabilities to continue to invest and better manage the rapidly ramping process technology costs. The transaction is expected to generate annual run-rate synergies of USD 125 million to be realised within 18 months after the transaction closes. "Our acquisition of Inphi will fuel Marvell's leadership in the cloud and extend our 5G position over the next decade," says Matt Murphy, president and CEO of Marvell, in the press release. "Inphi's technologies are at the heart of cloud data center networks and they continue to extend their leadership with innovative new products, including 400G data center interconnect optical modules, which leverage their unique silicon photonics and DSP technologies. We believe that Inphi's growing presence with cloud customers will also lead to additional opportunities for Marvell's DPU and ASIC products." "Marvell and Inphi share a vision to enable the world's data infrastructure and we have both transformed our respective businesses to benefit from the strong secular growth expected in the cloud data center and 5G wireless markets," adds Ford Tamer, President and CEO of Inphi. Upon closing, Ford Tamer, Inphi's President and CEO, will join Marvell's Board of Directors.