The chipmaker plans to reorganize the combined company and domicile in the U.S., creating a $40 billion semiconductor powerhouse.
|MRVL||MARVELL TECHNOLOGY, INC.||60.51||+0.20||+0.33%|
“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%.
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.
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.