Infrastructure semiconductor supplier, Marvell Technology Group has reached an agreement to acquire high-speed data movement specialist, Inphi.
A definitive agreement has been reached between the two companies, under which Marvell will acquire Inphi in a cash and stock transaction. The company will be based in the U.S., creating a combined semiconductor firm with an enterprise value of approximately $40bn.
Combining Marvell’s storage, networking, processor, and security portfolio, with Inphi’s electro-optics interconnect platform, will ensure the company is well-placed when it comes to end-to-end technology in data infrastructure. The combined company will be positioned to serve the data-driven world, addressing high growth, attractive end markets – cloud data centre and 5G.
The transaction is expected to generate annual run-rate synergies of $125m to be realised within 18 months after closing and is expected to become accretive to Marvell’s non-GAAP earnings per share by the end of the first year after the transaction closes. Also upon closing, Ford Tamer, Inphi’s president and CEO, will join Marvell’s board of directors.
Matt Murphy, president and CEO of Marvell said of the agreement: ‘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.
Inphi’s Tamer 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.’
