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.’

Company: 

Related news

Recent News

17 November 2020

Hitachi High-Tech is to acquire VLC Photonics, making it a subsidiary company through which it will continue to provide photonic integrated circuit (PIC) engineering services.

12 November 2020

Construction and engineering firm nmcn has been chosen by CityFibre to deliver its full-fibre rollouts across Barnsley and Halifax in the North of England.

09 November 2020

Digital network integrator, Sterlite Technologies (STL) has signed definitive agreements to acquire Italian interconnect vendor, Optotec.

02 November 2020

We are still very much open for business!