Marvell to buy Inphi, creating $40B semiconductor giant

Inphi shareholders will receive $66 cash and 2.323 Marvell shares for each Inphi share they own

Marvell Technology Group has agreed to buy Inphi Corp. for about $10 billion in cash and stock, making for the second mega chip deal this week.

The chipmaker plans to reorganize the combined company and domicile in the U.S., creating a $40 billion semiconductor powerhouse.

Ticker Security Last Change Change %
MRVL MARVELL TECHNOLOGY, INC. 60.51 +0.20 +0.33%
IPHI INPHI CORP 172.27 -1.88 -1.08%

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

Under the terms of the agreement, Inphi shareholders will receive $66 cash and 2.323 Marvell shares for each Inphi share they own. The deal represents an approximate 74% premium to the $5.76 billion market cap Inphi closed with on Wednesday.

Marvell shareholders will own 83% of the combined company while Inphi shareholders will control the remaining 17%.

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The transaction is expected to create $125 million in synergies that will be realized within 18 months of closing. Marvell forecasts the deal will be accretive to non-GAAP earnings within the first year.

Thursday's announcement comes two days after Advanced Micro Devices announced its intent to purchase Xilinx Inc. in a $35 billion all-stock deal.

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Other big chip deals this year include Nividia Corp.’s $40-billion deal for Softbank's Arm Holdings and the $20.9-billion deal Analog Devices Inc. reached to buy Maxim Integrated Products Inc.