Semiconductor manufacturer Marvell Technology has announced that it will be acquiring US chip maker Cavium in a deal worth $6bn.
Within the deal, Marvell will purchase all of Cavium’s outstanding shares, with the acquisition having been approved unanimously by the Board of Directors of both companies.
“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. “
Within the agreement; Syed Ali, Cavium’s Chairman and CEO; Raghib Hussain, the company’s Co-founder; and Anil Jahin, Vice President of IC Engineering will join the Board of Directors at Marvell.
Further, the merger will expand Marvell’s existing portfolio of storage hardware, networking solutions and high-performance connectivity products with Cavium’s portfolio of multi-core processing products, networking communications, storage connectivity and security solutions, to create a significant industry leader in technology infrastructure solutions.
“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,” said Syed Ali.
“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.”
The agreement will see a part-cash, part-share transaction, with approximately $40 and 2.2 Marvell common shares traded for each Cavium share.