Marvell to buy chip company Cavium for $6 billion

Marvell Technology to buy Cavium in $6bn deal

Marvel Technology Group Ltd (NASDAQ:MRVL) announced on Monday that it will buy its smaller rival Cavium Inc (NASDAQ:CAVM) in a deal valued at about US$6bn as it seeks to expand its networking equipment business.

Shares of Marvell were down 0.8 percent to $20.14, while Cavium was up 7 percent at $81.14 in early trading. The exchange ratio was based on a purchase price of $80 per share, which is a 21% premium to Cavium's closing price on November 2, before media reports about the transaction first surfaced.

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. The potential deal came to light November 3 when a Wall Street Journal report said the companies were in "advanced" talks.

The deal is part of Marvell's attempt to revamp its business after a scandal that led to the removal of its founders under pressure from Starboard Value, an activist investor.

World's biggest sovereign wealth fund proposes ditching oil and gas holdings
But the potential move by Norway's sovereign wealth fund is one of the most significant pledges yet, for a few reasons. The fund's exposure to fossil fuel markets is now double that of a standard global fund, the Central Bank said.

The big acquisition deal in progress in the semiconductor space might be Broadcom's rejected bid to take over Qualcomm, but a pair of less-prominent names in the space have come to terms.

Marvell hopes the acquisition will position the company to better compete with Intel, Qualcomm, and Broadcom.

Marvell intends to fund the purchase with a combination of cash on hand from the combined companies and $1.75 billion in debt financing.

"Individually, our businesses are exceptionally strong, but together, we will be one of the few companies in the world capable of delivering such a comprehensive set of end-to-end solutions to our combined customer base", Cavium Co-founder and Chief Executive Officer, Syed Ali, stated.

Related News:



Most liked

Giants WR Roger Lewis Actually Caught This Pass While Being Interfered With
Just to come through for my teammates and for them to put me in a position to win was pretty special". "There is parity. Smith, who has run a similar play before, was asked if he thought the Giants knew the shovel pass was coming.

Israel has secret ties with 'many' Arab states, says Cabinet minister
Bahrain's foreign minister, Sheikh Khalid Bin Ahmed Al Khalifa, urged strong action by the Arab League against Iran. Top American officials, including US President Donald Trump, have also repeated Saudi accusations against Iran.

15 killed in stampede for food aid in Morocco
He also made a decision to "personally cover the costs of victims' funerals and burials, and the care of the injured", it said. An investigation has been set up to determine what happened and establish responsibility, authorities have said.

'SNL' features host Chance the Rapper, Questlove cameo
Later in the night Chance broke out into song again for a sketch that turned out to be one of the breakout moments of the night. Chance the Rapper played a member of a trio of singers pleading with President Obama to return on 'Saturday Night Live '.

Tsunami warning after magnitude 7 quake rocks New Caledonia
The Pacific Tsunami Warning Centre has now issued a warning for people in the surrounding areas, including Australia. There has been a cluster of quakes in the area between magnitude 6.4 and 7 in the past 24 hours.

Cop killer sought in Pennsylvania manhunt
Police have identified a new person of interest in the case involving the death of a New Kensington officer. Please help support independent journalism by sharing this article with your friends and family.

21-year-old medical student crowned Miss World 2017
Manushi wants to become a Cardiac Surgeon from the Bhagat Phool Singh Government Medical College for Women in Sonipat. Manushi was given the crown by Miss World 2016 victor Puerto Rico's Stephanie Del Valle.

AC/DC founder Malcolm Young dead at 64
More from the post: "With enormous dedication and commitment he was the driving force behind the band". Malcolm Young , guitarist and co-founder of AC/DC , died Saturday at the age of 64.

Here's why Katy Perry is 'banned indefinitely' from China
Angel Adriana Lima's visa has been reportedly delayed and four other models were reportedly denied visas to travel to China. This year's Victoria's Secret Fashion Show will air on CBS on November 28 at 10 pm ET/PT.

Keystone Pipeline leaks 210000 gallons of oil
Bob Mckeown investigates TransCanada's influential allies in Washington and the deal to build Keystone XL. Among the groups, 350.org, which helped launch national protests against the project in the U.S.

Kim Kardashian to James Corden: 'Who's your least favorite Kardashian?'
To avoid the same fate, Corden actually answered her query about his "least-favorite" member of her family. I have the best relationship with my surrogate.

The Flames And Wings Had An Old-Fashioned Dust-Up
Unfortunately for the officials, that forced Witkowski to skate right by the Calgary bench. The incident occurred on Wednesday night when the Red Wings took on the Calgary Flames.

James Franco To Join The Superhero-verse With 'Multiple Man' Movie
If Franco signs on to the movie , it will serve as a reunion for him and Kinberg, who he is also working with on The Hardy Men . Basically, mixing Franco, Kinberg and Heinberg into one movie is the best sandwich you could ever ask for.

Loftus-Cheek will be given time to get stronger - Southgate
Southgate also admitted that he believes Chelsea players have held him back in the past. Benteke has not scored in any of his six appearances this season for Palace.

Sergio Aguero confirms fitness for Leicester City clash
At half-time, however, he fainted in the Albiceleste dressing room and had to be taken for hospital for routine tests . The Super Eagles then added three goals in the second-half through Arsenal's Alex Iwobi (2) and Brian Idowu.