Friday, 15 December, 2017

Marvell Technology buys Cavium for $6 billion

Reuters Reuters
Cecilia Poole | 21 November, 2017, 00:51

The semiconductor manufacturing industry looks to be consolidating further with the news that chipmaker Marvell Technology Group Ltd. has agreed to acquire its rival Cavium Inc. for $6 billion.

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.

Recommended

  • Harrison Ford helps out driver who veered off freeway, crashed

    Harrison Ford helps out driver who veered off freeway, crashed

    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.
    DO Trust OnePlus 5T Benchmarks in Reviews

    DO Trust OnePlus 5T Benchmarks in Reviews

    Last month, the company released the Android 8.0 Oreo-based OxygenOS Open Beta for both these devices. Apart from these new attractions, the package also includes September security patch.
    Selena Gomez Debuts Blonde Hair at AMAs 2017 & We are SHOOK

    Selena Gomez Debuts Blonde Hair at AMAs 2017 & We are SHOOK

    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.
  • Former NFL Wide Receiver Terry Glenn Dies In Car Accident

    Former NFL Wide Receiver Terry Glenn Dies In Car Accident

    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.
    Saudi Arabia, Arab allies to hold Cairo talks on Iran, Hezbollah

    Saudi Arabia, Arab allies to hold Cairo talks on Iran, Hezbollah

    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.
    Woman with 'f*** Trump' sticker on her truck is arrested

    Woman with 'f*** Trump' sticker on her truck is arrested

    Afterward, Fonseca was captured on what representatives said was a remarkable warrant accusing her of extortion. The owner of a pickup truck featuring a huge decal on its back window saying "f*** Trump" has been arrested .
  • Taylor Swift Delivers Message to Diana Ross at American Music Awards 2017

    Taylor Swift Delivers Message to Diana Ross at American Music Awards 2017

    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.
    Border Patrol Agent Killed On Texas - Mexico Border

    Border Patrol Agent Killed On Texas - Mexico Border

    Carlos Diaz, a spokesman for the CBP, would not describe the incident in any further detail, saying the FBI is investigating. The region's mountains and the Rio Grande make it a hard area for people to cross illegally into the US from Mexico .
    Trump Calls For Marshawn Lynch To Be Suspended For Anthem Protest

    Trump Calls For Marshawn Lynch To Be Suspended For Anthem Protest

    Sunday afternoon, the Oakland Raiders and New England Patriots squared off in Mexico City, Mexico. Trump tweeted on Monday morning that Lynch "sat down to boos", and showed "great disrespect".
  • What Lincoln Riley said about Baker Mayfield, punishment

    What Lincoln Riley said about Baker Mayfield, punishment

    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.
    Scientists Predict 2018 Will Be a Bad Year for Earthquakes. Here's Why

    Scientists Predict 2018 Will Be a Bad Year for Earthquakes. Here's Why

    Changes in the speed of the Earth's rotation could reportedly spark powerful tremors worldwide that would be devastating. All it takes is a little nudge to upset the world's balance, and 2018 looks set to be a very unbalanced year indeed.
    Sega Unveils Frozen Warfare in

    Sega Unveils Frozen Warfare in "Valkyria Chronicles 4"

    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.

Arsenal to Reportedly Sign Borussia Dortmund Chief Scout Sven Mislintat Arsenal to Reportedly Sign Borussia Dortmund Chief Scout Sven Mislintat It was reported that Mislintat's appointment would mean that long-serving chief scout Steve Rowley would be moved aside. Mislintat was instrumental in acquiring Kagawa for a mere €350,000 (£310k) from Japanese club Cerezo Osaka in 2010.

'Justice League' stumbles at the box office '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 .

Shell, Bio-Bean Power London Buses with Coffee Ground Biofuel Shell, Bio-Bean Power London Buses with Coffee Ground Biofuel A good idea can come from anywhere, but with the scale and commitment of Shell, we can help enable true progress. According to official figures in 2015, London's buses used 240 million liters of diesel fuel a year.