Marvell acquiring Inphi in deal valued at $40B; Inphi shares soar 34%

Oct. 29, 2020 7:29 AM ETMRVL, IPHIBy: Brandy Betz, SA News Editor29 Comments
  • Inphi (NASDAQ:IPHI) shares soar 34% pre-market after formally announcing it will be acquired by Marvell (NASDAQ:MRVL) in a cash and stock transaction with an enterprise value of $40B. The purchase price is about $10B.
  • The transaction includes $66 in cash and 2.323 shares of the combined company for Inphi holders. Marvell shareholders will have an 83% stake in the combined company.
  • The deal is expected to close in H2 2021. Marvell will finance the deal with cash on hand and obtained debt financing.
  • After the deal closes, Inphi CEO Ford Tamer will join Marvell's board.
  • Marvell says the purchase positions it for leadership in cloud and extends its 5G reach, expanding the company's TAM to $23B and accelerating market growth to 12% CAGR.
  • The combination will be accretive to revenue growth and margins and will double Marvell's number of $100M+ cloud & networking customers to 8.
  • "Our acquisition of Inphi will fuel Marvell's leadership in the cloud and extend our 5G position over the next decade," says Marvell CEO Matt Murphy. "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 shares are down 6.5%, a standard drop for the company doing the buying.
  • Press release.
  • Previously: Marvell nears deal to acquire Inphi for $10B (Oct. 29 2020)
  • Updated the headline and first bullet to make it clearer that $40B is the enterprise value, not the purchase price.

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