Marvell to pay $8bn for Inphi in cloud, 5G deal

November 03, 2020 //By Peter Clarke
Marvel to pay $8bn for Inphi in cloud, 5G deal
Marvell Technology Group Ltd. is set to acquire Inphi Corp. to create a semiconductor company addressing copper and photonic networking for datacenter and 5G infrastructure.

Marvell has offered $66 in cash and 2.323 shares of stock of the combined company for each Inphi share. Upon closing of the transaction Marvell shareholders will own approximately 83 percent of the combined company and Inphi stockholders will own approximately 17 percent.

The deal has been variously valued at $7.7 billion, $8 billion and even $10 billion but is set to create a combined company with an enterprise value of about $40 billion.

Marvell provides processors for storage, networking and security while the success of Inphi's electro-optics interconnect platform is driving the deal.

The deal has been approved by both boards of directors It is expected to close by 2H21, subject to the approval of Marvell shareholders and Inphi stockholders and the satisfaction of customary closing conditions, including applicable regulatory approvals.

"Our acquisition of Inphi will fuel Marvell’s leadership in the cloud and extend our 5G position over the next decade," said Matt Murphy, CEO of Marvell, in a statement. "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."

Upon closing, Ford Tamer, Inphi's CEO, will join Marvell’s board of directors.

Related links and articles:

www.marvell.com

www.inphi.com

News articles:

Server processor startup raises $240 million

Marvell and Samsung target next generation 5G infrastructure


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