Marvell's main business is in chips that control hard disk drives, a market that's no longer growing as new technology begins to take over data storage.
"With Marvell facing secular challenges on its core chip business, this acquisition is a smart strategic move which puts the company in a stronger competitive position for the coming years", said GBH Insights analyst Daniel Ives.
Marvell's stock was up 2% in early trading, while Cavium's rose almost 8%.
With the buyout of its rival, the chipmaker will be able to diversify away from its traditional storage devices business following an agreement with Starboard Value previous year to accept three new directors nominated by the activist hedge fund to its board.
The agreement will see a part-cash, part-share transaction, with approximately $40 and 2.2 Marvell common shares traded for each Cavium share.
A buyout of Cavium would give a boost to the networking ambitions of Marvell, which has clients such as network giants Cisco Systems Inc (CSCO.O) and Juniper Networks (JNPR.N).
Last week, Qualcomm turned down a proposed $103 billion takeover bid by communications chipmaker Broadcom.
The Marvell transaction, which values Cavium at US$80 per share, is expected to close in the middle of 2018.
Intel now dominates the server market, but the combined Marvell-Cavium company will be better suited to take on the giant chipmaker than Cavium alone.
Marvell plans to announce its cash-and-stock acquisition of Cavium on Monday, the sources said, asking not to be identified ahead of an official announcement.
Goldman Sachs was the financial adviser to Marvell while Qatalyst Partners and JP Morgan Securities were the financial advisers to Cavium.
It is not the first time life has imitated art for Ford, famous for his heroic roles as Indiana Jones and Han Solo in Star Wars . He was reportedly driving behind the woman when she lost control of her vehicle and crashed.
While one user wrote: " Selena Gomez can't sing to save her life", another posted: "No hate, but Selena Gomez is lip-syncing". While her negligee was certainly unexpected, the (fake) blood on her face and on her knees took us totally by surprise.
Before the 2002 season, the Patriots traded Glenn to the Green Bay Packers in exchange for two fourth-round draft picks. Five years later, on October 14, 2001, Glenn caught Patriots quarterback Tom Brady's first career touchdown pass.
The Arab ministers held its meeting at the request of Saudi Arabia to discuss "violations" committed by Iran in the region. Bahrain also accused Iran of being behind an oil pipeline explosion this month.
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DIANA Ross was honoured at the American Music Awards on Sunday night but it was her weird outfit that caught everyone's attention. For her first outfit of the night, the Blackish actress walked the red carpet in a burgundy sequin gown with a back cutout.
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Mayfield was irked before playing the Jayhawks, when KU's captains refused to shake his hand during the pre-game coin toss. Nevada Gaming Control requires Nevada sportsbooks to halt betting on the victor of the Heisman Trophy on November 19.
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As a last-ditch attempt at capturing the Imperial Capital, the Federation decides to initiate Operation Northern Cross. The last game , Valkyria Chronicles III , was only released for the PSP in Japan back in 2011.
'Justice League' stumbles at the box office
The year-to-date deficit dropped from 5% to 4.3% in one week with the current 2017 total at 9.39 billion, according to comScore. That number, while still big for an opening weekend , came in under the roughly $110 million the industry expected .