Marvell Technology Group Ltd. announced on Nov. 20 that it has reached an agreement to acquire Cavium Inc.
The deal will see Marvell paying $40 for each Cavium common share and giving each shareholder 2.1757 Marvell common shares. The total value of the deal is approximately $6 billion. The acquisition is expected to close in the middle of 2018, pending regulatory approvals.
Marvell and Cavium each have complementary product sets spanning enterprise, cloud data center and service provider networks. Cavium's portfolio includes multi-core processors, ARM server processors, data center switches and ethernet adapters. Marvell's portfolio already includes enterprise and campus switches, PHYs and wireless connectivity technologies.
"This is an exciting combination of two very complementary companies that together equal more than the sum of their parts," Marvell President and Chief Executive Officer Matt Murphy stated. "This combination expands and diversifies our revenue base and end markets, and enables us to deliver a broader set of differentiated solutions to our customers."
The combined company will generate 37 percent of its revenues from networking and processing silicon, with 46 percent of revenue coming from storage technologies.
"Individually, our businesses are exceptionally strong, but together, we will be one of the few companies in the world capable of delivering such a comprehensive set of end-to-end solutions to our combined customer base," Cavium Co-founder and Chief Executive Officer Syed Ali stated. "Our potential is huge. We look forward to working closely with the Marvell team to ensure a smooth transition and to start unlocking the significant opportunities that our combination creates."
Sean Michael Kerner is a senior editor at EnterpriseNetworkingPlanet and InternetNews.com. Follow him on Twitter @TechJournalist.