- Inphi designs chips that move data over fiber-optic cables hundreds of times faster than copper cables
- Marvell will give Inphi shareholders $66 in cash and 2.32 shares of stock in the combined company for each share of Inphi
(Courtesy – insperity.com)
As per a report by Reuters, chip supplier Marvell Technology Group Ltd said that it has agreed to buy Inphi Corp in a $10 billion cash-and-stock deal aimed at broadening Marvell’s footprint in data centers and 5G network infrastructure. The report added that Marvell competes against Broadcom Inc to supply chips that move data around on copper-based cables. Inphi designs chips that move data over fiber-optic cables hundreds of times faster than copper cables.
Biggies like Amazon, Alphabet Inc’s Google, Microsoft Corp and Facebook Inc use Inphi’s chips for optical connections inside the massive data centers that power their online services added the report. Inphi has also won deals to help Microsoft string together its data centers with high-speed optical connections and to connect various parts of 5G networks.
Marvell shareholders will own about 83 per cent of the combined company
Marvell Chief Executive Matt Murphy told Reuters in an interview that data centres and 5G infrastructure are the company’s two key markets. He added that “they are are right in there” and “so the fit is really good.”
As per the report, Marvell will give Inphi shareholders $66 in cash and 2.32 shares of stock in the combined company for each share of Inphi. After the deal, Marvell shareholders will own about 83 per cent of the combined company, with Inphi shareholders owning about 17 per cent.
It added that Marvell plans to use balance sheet cash and debt to fund the deal, taking on about $4 billion in new debt in connection with the transaction with financing commitments from JPMorgan Chase & Co.
