Marvell To Buy Cavium For $6 Billion, Creating Chip Powerhouse

Marvell to buy chip company Cavium for $6 billion 0

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

The transaction will combine Marvell's portfolio of storage drive controllers, networking systems and wireless connectivity products with Cavium's portfolio of multicore processing, networking communications, storage connectivity and security products.

"With Marvell facing secular challenges on its core chip business, this acquisition is a smart strategic move which puts the company in a stronger competitive position for the coming years", said GBH Insights analyst Daniel Ives. The deal has been approved by the boards of directors at both companies and is expected to close in mid-2018.

Murphy previous year replaced former CEO Sehat Sutardja and President Weili Dai - a husband-wife team who co-founded the company - after an audit committee questioned their management style and hedge fund investor Starboard Value LP made a host of demands.

"This is an exciting combination of two very complementary companies that together equal more than the sum of their parts", Marvell's chief executive Matt Murphy said in a statement.

Читайте также: David Cassidy In Critical Condition ... Organs Failing

Cavium shareholders will own about 25% of the combined company.

In the last two years, the chip industry has witnessed a series of deals as companies try to gain market share in emerging areas such as automotive technologies and connectivity.

XAutoplay: On | OffSanta Clara, Calif. -based Marvell agreed to acquire all outstanding shares of Cavium common stock in exchange for $40 per share in cash and 2.1757 Marvell common shares for each Cavium share.

Marvell plans to announce its cash-and-stock acquisition of Cavium on Monday, the sources said, asking not to be identified ahead of an official announcement. Earlier this month, chipmaker Qualcomm Inc rejected rival Broadcom Ltd's $103 billion takeover bid, one of the biggest ever in technology dealmaking, saying the offer undervalued the company and would face regulatory hurdles.

Marvell has obtained a $850 million bridge loan commitment and a $900 million committed term loan from Goldman Sachs Group Inc. and Bank of America Corp.

При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
«» 2007 - 2017 Copyright.
Автоматизированное извлечение информации сайта запрещено.

Код для вставки в блог

Related:

Comments

Latest news

Border Patrol agent killed, partner injured on duty in Texas
He says the wall he has promised to build along the border between the USA and Mexico is on the agenda. The region's mountains make it a hard area for people to cross illegally into the US from Mexico.

Marshawn Lynch targeted by Trump for Mexico anthem protest
Trump said in an early morning Monday tweet that, "Next time National Football League should suspend him for remainder of season. At the rally, the president said any "SOB" who kneels during the anthem deserves to be taken off the field.

Scientists Predict More Earthquakes In 2018 As Earth Slows
Two geophysicists have warned that there could be a rise in the number of high magnitude Earthquakes next year. The last slowdown reportedly began in 2011.

Selena Gomez dyed her hair blonde
The news comes after Gomez and The Weeknd - whose real name is Abel Tesfaye - called time on their 10-month romance in October. Selena Gomez is a hair chameleon.

Trader Joe's Says Pre-Packaged Salads May Contain Glass, Hard Plastic
Again, if you did buy any of those salads, but they have a different inspection code, Trader Joe's says they should be fine. All potentially affected products have been removed from store shelves and destroyed, according to the statement.

Country music legend Mel Tillis dead at 85: publicist
He even entitled his 1984 autobiography, " Stutterin' Boy ", a nickname conferred on him early in his career. After attending the University of Florida and dropping out, Tillis joined the U.S.

Grigor Dimitrov edges David Goffin to win ATP Finals title in London
It was too close to call but two Sock double faults helped Dimitrov break for 5-3. Dimitrov made five break and pulled one break point.

Friday forecast: Warm with patchy drizzle this morning
Today patchy drizzle is possible through about noon otherwise the question remains how quickly clouds clear from west to east. We'll warm back into the middle 50s for Tuesday with another (mostly dry) front moving through on Wednesday .

Images show North Korea's 'submarine ballistic missile programme'
However, the report said no activity could be seen suggesting preparations for a new test of a submarine-launched missile.

Sasikala, kin blamed for IT raids in Poes Garden
But ministers in the Edappadi Palaniswamy government blamed the Sasikala clan for the present state of affairs. Panneerselvam who were responsible for the raid at "Veda Nilayam", where the late Chief Minister lived.

Weather: Cold, wet and windy weekend
A northwest wind of 8 to 13 miles per hour , gusting as high as 18 miles per hour , will become light northwest after midnight. Clouds increase through the day Saturday from west to east ahead of our next system that brings rain and strong winds.

AC/DC Guitarist Malcolm Young is Dead at 64
Malcolm is survived by his wife O'Linda, children Cara and Ross, three grandchildren, a sister and a brother, the band said. Well-wishes can be sent to the family via a special memorial website, which will be available next week.

Victoria's Secret Fashion Show: Katy Perry Reportedly Banned From Performing in China
Page Six also noted that Adriana Lima is also having difficulties securing her visa due to a "diplomatic problem". Alongside Gigi Hadid , some other big names of Victoria's Secret have been denied Chinese visa.

Five ex Congress MLAs are in the the BJP list of Gujarat
Gujarat Chief Minister Vijay Rupani will contest election from his traditional Rajkot West constituency. In the list, there are 13 ST candidates and two SC candidates.

Bishop Dewane disappointed by House passage of tax cut bill
I hear from a lot of people in Eastern Washington, especially farmers, business owners, small-business owners, that that is a very hard tax.

Other news