Marvell has offered $66 in cash and 2.323 shares of stock of the combined company for each Inphi share. Upon closing of the transaction Marvell shareholders will own approximately 83 percent of the combined company and Inphi stockholders will own approximately 17 percent. The acquisition aims to extend Marvell's expertise in cloud and 5G technology.
The deal has been variously valued at $7.7 billion, $8 billion and even $10 billion but is set to create a combined company with an enterprise value of about $40 billion.
Marvell provides processors for storage, networking and security while the success of Inphi's electro-optics interconnect platform is driving the deal.
The deal has been approved by both boards of directors It is expected to close by 2H21, subject to the approval of Marvell shareholders and Inphi stockholders and the satisfaction of customary closing conditions, including applicable regulatory approvals.
"Our acquisition of Inphi will fuel Marvell’s leadership in the cloud and extend our 5G position over the next decade," said Matt Murphy, CEO of Marvell, in a statement. "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."
Upon closing, Ford Tamer, Inphi's CEO, will join Marvell’s board of directors.