Marvell Technology Group Ltd. (NASDAQ: MRVL) has reported a definitive agreement where Marvell will acquire Inphi in a cash and stock transaction. The board of directors by both companies have unanimously approved. Marvell will reorganize the company in the United States to create a semiconductor powerhouse with a value of USD 40 Billion. Inphi has formed a highspeed data platform to meet demand for increased bandwidth and low power for the cloud data centers and global networks of the future.
Data driven workloads such as machine learning have expanded beyond servers and now span entire cloud data centers making software defined data centers the new computing model. The new company will be positioned to serve the data driven world, cloud datacenters and 5G. “Our acquisition of Inphi will fuel Marvell’s leadership in the cloud and extend our 5G position over the next decade,” said Matt Murphy, president and CEO of Marvell. “Inphi’s technologies are at the heart of cloud data center networks and they continue to extend their leadership with innovative new products, including 400G data center interconnect optical modules, which leverage their unique silicon photonics and DSP technologies. We believe that Inphi’s growing presence with cloud customers will also lead to additional opportunities for Marvell’s DPU and ASIC products.”
“Marvell and Inphi share a vision to enable the world’s data infrastructure and we have both transformed our respective businesses to benefit from the strong secular growth expected in the cloud data center and 5G wireless markets” said Ford Tamer, President and CEO of Inphi. “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.”
At the close of the transaction, Ford Tamer, Inphi’s President and CEO will join Marvell’s Board of Directors