Bermuda-headquartered semiconductor company Marvell Technology has signed on the dotted line to purchase Nasdaq-listed peer Inphi.
The buyer will pay USD 66.00 in cash and issue 2.30 shares for every item of stock acquired.
Following completion of the acquisition, which has been unanimously recommended by the boards of both parties, Marvell shareholders will own 83.0 per cent of the enlarged business, with Inphi’s investors holding the balance.
The purchase will be financed using cash on hand.
Closing is expected to follow during the second half of 2021, subject to the green light from shareholders of both companies, as well as regulatory approvals, among other customary conditions.
The enlarged group will be domiciled in the US, following a reorganisation, and will have an enterprise value of around USD 40.00 billion.
Commenting on the takeover, Marvell chief executive Matt Murphy said: “Our acquisition of Inphi will fuel Marvell’s leadership in the cloud and extend our 5G position over the next decade.”
“We believe that Inphi’s growing presence with cloud customers will also lead to additional opportunities for Marvell’s DPU and ASIC products.”
His counterpart at the target, Ford Tamer, who will join Marvell’s board upon completion, added: “Combining with Marvell significantly increases our scale, accelerates our access to the next generations of process technology, and opens up new opportunities in 5G connectivity.”
The buyer anticipates annual run-rate synergies of USD 125.00 million, from 18 months after completion.
At the same time as announcing the acquisition, Marvell revealed its preliminary financials for the third quarter of fiscal 2021, saying it expects revenue for the three months to be around USD 750.00 million.
There have been 1,056 deals targeting semiconductor manufacturers announced worldwide in 2020 to date, according to Zephyr, the M&A database published by Bureau van Dijk.
Those targeted include UK computer hardware maker Arm, which Nvidia agreed to acquire for USD 40.00 billion in the sector’s largest transaction of the year to date.
© Zephus Ltd