Marvell said in a statement Thursday it intends to reorganize so that the combined company will be domiciled in the United States. The combined company will have an enterprise value of about $40 billion.
“Our acquisition of Inphi will fuel Marvell’s leadership in the cloud and extend our 5G position over the next decade,” said Matt Murphy, Marvell CEO and president. “Inphi’s technologies are at the heart of cloud data center networks and they continue to extend their leadership with innovative new products, including 400G data center interconnect optical modules, which leverage their unique silicon photonics and DSP technologies. We believe that Inphi’s growing presence with cloud customers will also lead to additional opportunities for Marvell’s DPU and ASIC products.”
Marvell agreed to pay $66 a share in cash and 2.323 shares of stock for each share of Inphi. The deal values Inphi at roughly $157.83 a share.
Inphi shares were jumping nearly 30% to $144 in premarket trading Thursday. Marvell was down 6.96% to $36.78.
Once the deal closes, Marvell shareholders will own about 83% of the combined company and Inphi stockholders will own the rest.
The transaction is expected to close by the second half of 2021.