Marvell Technology to Buy Rival Chipmaker Cavium for $6 Billion

Marvell Technology to Buy Rival Chipmaker Cavium for $6 BillMarvell Technology to Buy Rival Chipmaker Cavium for $6 Billionion

Chipmaker Marvell Technology Group Ltd said on Monday it would buy smaller rival Cavium Inc for about $6 billion (roughly Rs. 39,016 crores), as it seeks to expand its wireless connectivity business in a rapidly consolidating semiconductor industry.

Shares of Marvell were down 0.8 percent to $20.14, while Cavium was up 7 percent at $81.14 in early trading.

Chief Executive Matthew Murphy, who took the top job a year ago, has been focusing on Marvell’s networking business to counteract declining demand for its chips used in hard disk drives of personal computers.

Murphy last 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.

Analysts say the new leadership is preparing a number of important new product launches for later this year after refreshing 25 products in 18 months.

The deal is Murphy’s first acquisition at the company.

Marvell Technology

“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.

A buyout of Cavium would give a boost to the networking ambitions of Marvell, which has clients such as network giants Cisco Systems Inc and Juniper Networks .

Marvell and Cavium combined would be able to better compete with bigger rivals Intel Corp , Qualcomm and Broadcom , Stifel analyst Kevin Cassidy said.

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.

The most recent is a bid by Wi-Fi chipmaker Broadcom for rival Qualcomm for a whopping $103 billionin what could be one of the biggest technology deals ever.

Marvell’s offer of $84.15 – based on the stock’s close on Friday – represents a premium of 11 percent to San Jose, California-based Cavium’s close, according to a Reuters calculation.

Chipmaker Cavium

Marvell will offer $40 per share in cash and 2.1757 of its shares for each Cavium share.

Meanwhile the exchange ratio was based on a purchase price of $80 per share, Marvell’s share price prior to the first media report of the transaction on Nov. 3.

Nevertheless the chipmaker plans to fund the deal with a combination of cash on hand from the combined companies and $1.75 billion in debt financing, the company said.

Goldman Sachs & Co LLC was the financial adviser to Marvell, while Qatalyst Partners LP and J.P. Morgan Securities LLC were the financial advisers to Cavium.

Meanwhile we believe this article was interesting, if yes, don’t hesitate using our share button below to inform – friends and relation via Facebook, twitter or Google+

update marvell semiconductor careers
marvell technology stock
5488 marvell lane santa clara, ca 95054
latest marvell semiconductor stock
marvell wiki
update marvell semiconductor layoffs
marvell technology group jean hu
newly marvell news

Related Post

Troubleshooting Infinix Nougat 7 Problems & H... Troubleshooting Infinix Nougat 7 Problems & Hot 4 – Complete Guide - This guide will take you through on how to Rectify Infinix Nougat 7 Problem...
Wiko View XL Full Specifications Features and Pric... Wiko View XL Full Specifications Features and Price See price on jumia Wiko View XL Full Specifications Features and Price See price on jumia: He...
www.whatspp.com | whatsapp download 2018 | whatsap... www.whatspp.com | whatsapp download 2018 | whatsapp download new version 2019 Getting Whatsap installed on mobile devices, desktop, windows, etc now ...
Just In Gionee launches eight bezel-less smartphon... Just In Gionee launches eight bezel-less smartphones: Price, specs, more Just In Gionee launches eight bezel-less smartphones: Price, specs, more: As...
Checking How to change your Verizon cell phone num... Checking How to change your Verizon cell phone number verizon customer service toll free number | Checking How to change your Verizon cell phone n...
Infinix Zero 5 Pro price, specifications, features... Infinix Zero 5 Pro price, specifications, features, comparison Infinix Zero 5 Pro price, specifications, features, comparison: Infinix Zero 5 Pr...
TSTV CUSTOMER CARE NUMBER – TSTV CALL OFFICI... TSTV CUSTOMER CARE NUMBER - TSTV CALL OFFICIAL CENTER - TSTV NIGERIA Getting more info on TSTV Customer Care Number | TSTV Official Website | TSTV Ca...
reynolds state bank cd rates – brian reynold... reynolds state bank illinois - reynolds state bank cd rates - brian reynolds state bank of countryside reynolds state bank cd rates - brian reynolds s...
Lava A97 price specifications features comparison ... Lava A97 price specifications features comparison and Where to buy 2018 Lava A97 price specifications features comparison and Where to buy 2018: di...
ippis registration for federal civil service ̵... ippis registration for federal civil service - www.verification:ippis:gov:ng - Online Registration | Form Download | Verification portal An article t...
CHECKING HOW TO GET US BANKING ROUTING NUMBERS CHECKING HOW TO GET US BANKING ROUTING NUMBERS US Bank Routing Number | CHECKING HOW TO GET US BANKING ROUTING NUMBERS | This article has guidelines o...
Wiko View XL Full Specifications Features and Pric... Wiko View XL Full Specifications Features and Price Wiko View XL Full Specifications Features and Price: Here we have all the full details on any...
Chrome 63 Now Available for Android Linux Mac Wind... Chrome 63 Now Available for Android Linux Mac Windows What's Super Chrome 63 Now Available for Android Linux Mac Windows What's Super: download googl...
latest phones 2018 Samsung Galaxy S7 edge – ... latest phones 2018 Samsung Galaxy S7 edge - Full phone specifications latest phones 2018 Samsung Galaxy S7 edge - Full phone specifications: samsung s...
Blackview BV9000 Prices Features Specs and Guide O... Blackview BV9000 Prices Features Specs and Guide On Buying 2019 trending tech 2018 2019 Blackview BV9000 Prices Features Specs and Guide On Buying 201...
JUST IN: Bitcoin soars past US$8,000 technology sh... JUST IN: Bitcoin soars past US$8,000 technology shift concern vanishes Bitcoin soars past US$8,000 as technology shift concern vanis...

Pin It on Pinterest

Share This