Accelerating Growth and Leadership in Cloud and 5G Infrastructure – Marvell to Acquire Inphi
On Oct 29, 2020, Marvell and Inphi announced a definitive agreement under which Marvell will acquire Inphi in an all-stock transaction for USD $40 billion. Marvell’s intention with this acquisition is to accelerate its growth and leadership in the cloud and 5G Infrastructure market.
Under the terms of the definitive agreement, the transaction will consist of $66M 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% of the combined company and Inphi stockholders will own approximately 17% of the combined company.
Marvell intends to finance the transaction with cash on hand, and additional financing. Marvell has obtained debt financing commitments from JPMorgan Chase Bank, N.A. The transaction is not subject to any financing condition and is expected to close by the second half of calendar 2021, subject to the approval of Marvell shareholders and Inphi stockholders and the satisfaction of customary closing conditions, including applicable regulatory approvals.
- Creates a U.S. semiconductor powerhouse with an enterprise value of approximately $40 billion.
- Positions Marvell for leadership in cloud; with extended 5G opportunity
- Adds Inphi’s leading electro-optics interconnect platform to the Marvell portfolio which is highly complementary.
- Expands Marvell’s addressable market to $23 billion and accelerates market growth to 12% CAGR.
- Accelerates revenue growth, gross and operating margin; enhances long-term financial model.
Impacts to the Customer:
- Expected to double the number of $100M+ cloud & networking customers
- Inphi’s growing presence with cloud customers will also lead to additional opportunities for Marvell’s DPU and ASIC products.
- This highly complementary transaction expands Marvell’s addressable market, strengthens the customer base, and accelerates Marvell’s leadership in hyper scale cloud data centers and 5G wireless infrastructure.
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November 4, 2020, by Mostafa Mansour3