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Marvell and Cavium to Create Infrastructure Solutions

December 01, 2017

Marvell Technology Group and Cavium announced an agreement for common stock share acquisition. Per the terms, Marvell will acquire all of Cavium’s outstanding shares in exchange for $40/share in cash. Additionally, for every Cavium share, a Marvell common share will be worth 2.1757. With $3.4B in annual revenue, this will make Marvell the leader in infrastructure solutions.

Marvell’s selection of HDD and SSD storage controllers, networking solutions, and high-performance wireless products will now fuse with Cavium’s multi-core processing, networking communications, storage connectivity and security solutions. Users will now be privy to end-to-end cloud solutions, bringing Marvell’s addressable market upwards of $16B.

"This is an exciting combination of two very complementary companies that together equal more than the sum of their parts," said Marvell President and Chief Executive Officer, Matt Murphy. "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 agreement is set to be finalized by the middle of next year, pending regulatory approval. Marvell has obtained financial promises from both Goldman Sachs Bank USA and Bank of America Merrill Lynch. This transaction will be extremely profitable and Cavium is looking forward to a flourishing future working with Marvell.

"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," said Cavium Co-founder and Chief Executive Officer, Syed Ali. "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."

Edited by Maurice Nagle

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