Marvell’s Inphi acquisition to drive growth in cloud data centre market

Share this on social media:

Infrastructure semiconductor supplier, Marvell Technology Group has reached an agreement to acquire high-speed data movement specialist, Inphi.

A definitive agreement has been reached between the two companies, under which Marvell will acquire Inphi in a cash and stock transaction. The company will be based in the U.S., creating a combined semiconductor firm with an enterprise value of approximately $40bn.

Combining Marvell’s storage, networking, processor, and security portfolio, with Inphi’s electro-optics interconnect platform, will ensure the company is well-placed when it comes to end-to-end technology in data infrastructure. The combined company will be positioned to serve the data-driven world, addressing high growth, attractive end markets – cloud data centre and 5G.

The transaction is expected to generate annual run-rate synergies of $125m to be realised within 18 months after closing and is expected to become accretive to Marvell’s non-GAAP earnings per share by the end of the first year after the transaction closes. Also upon closing, Ford Tamer, Inphi’s president and CEO, will join Marvell’s board of directors.

Matt Murphy, president and CEO of Marvell said of the agreement: ‘Our acquisition of Inphi will fuel Marvell’s leadership in the cloud and extend our 5G position over the next decade. We believe that Inphi’s growing presence with cloud customers will also lead to additional opportunities for Marvell’s DPU and ASIC products.

Inphi’s Tamer added: ‘Combining with Marvell significantly increases our scale, accelerates our access to the next generations of process technology, and opens up new opportunities in 5G connectivity.’

Recent News

20 October 2021

Optoelectronic component manufacturer II‐VI is to power all of its European facilities with 100 per cent renewable electricity sources.

15 October 2021

Lumentum has awarded its first diversity, inclusion, and belonging (DIB) scholarships to 16 applicants from its 2021 internship program.

13 October 2021

Ciena and not-for-profit organisation, Academy Achievers are collaborating to help close the digital and educational gap among students interested in science, technology, engineering, and math (STEM) careers.

12 October 2021

Private investment house Ardian, has made its first investment in the Spanish telecoms market with the acquisition of operator Adamo from EQT Private Equity.