Microchip Maker Marvell Technology Buys Inphi For $10 Billion
American microchip manufacturer Marvell Technology is preparing a deal to buy its competitor Inphi Corp., according to the official press release of the company. According to the publication, the parties have already agreed on the terms of the merger and the deal will be officially announced in the near future. The purchase amount will be $10 billion.
Marvell, which has a market value of approximately $26 billion, produces microchips for data storage systems and communication networks. The latter is also handled by Inphi, the acquisition of which will help Marvell gain a foothold in this fast-growing market segment.
The merger of Marvell and Inphi is the second major deal in the US semiconductor market in recent times. The other day about the announced merger of AMD and Xilinx. The deal was worth $35 billion.
Marvell Technology Group Ltd. (NASDAQ: MRVL), a leader in infrastructure semiconductor solutions, and Inphi Corporation (NASDAQ: IPHI), a leader in high-speed data movement, today announced a definitive agreement, unanimously approved by the boards of directors of both companies, under which Marvell will acquire Inphi in a cash and stock transaction. In conjunction with the transaction, Marvell intends to reorganize so that the combined company will be domiciled in the United States, creating a U.S. semiconductor powerhouse with an enterprise value of approximately $40 billion.