Marvell Technology Group Ltd. (MRVL) said Thursday it has agreed to acquire Inphi Corp. (IPHI) in a cash and stock deal that will create a semiconductor company with an enterprise value of $40 billion. Under the terms of the deal, Marvell will pay $66 in cash and 2.323 shares for each Inphi share. Marvell shareholders will own 83% of the combined company, while Inphi shareholders own the remaining 17%. The deal is expected to close by the second half of 2021. "Combining Marvell's storage, networking, processor, and security portfolio, with Inphi's leading electro-optics interconnect platform, will position the combined company for end-to-end technology leadership in data infrastructure," the companies said in a joint statement. The deal is the second in the chip sector this week, after AMD (AMD) acquired Xilinx Inc. (XLNX) in a $35 billion deal. Inphi shares soared 34% on the news, while Marvell was down 4.6%.
-Ciara Linnane; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
October 29, 2020 07:20 ET (11:20 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.