Marvell agreed to spend $ 6 billion to acquire Cavium

According to Reuters, informed sources, chip maker Marvell Technology has agreed to spend 6 billion acquisition of Cavium in the industry, hoping to expand to the field of network equipment as early as early November there are rumors weeks later Reached an agreement today finally give an accurate quote.

The transaction will help Marvel gradually reduce the proportion of traditional storage devices to more areas, the company last year received three new directors nominated by hedge fund Starboard Value.

Informed sources said Marvel plans to announce the acquisition of Cavium by cash and stock on Monday, but neither side has commented.

Matt Murphy, who ran Marvel last year, has already restructured the company, cutting staff and hoping to add products and services to the data center and wireless communications markets.

Headquartered in San Jose, California, Cavium manufactures networks, security, server and switch processors and systems, and last year acquired QLogic for about $ 1.3 billion, the latter specializing in the production of interactive devices for storage area networks.

As of last week's close, Marvel's market capitalization is about $ 10.06 billion and Cavium's market capitalization is about $ 5.243 billion. If the deal is completed, the new company will have a market capitalization of more than $ 15 billion and a revenue of about $ 3.5 billion.

Cavium ™ is a leading supplier of semiconductor products that provide secure and intelligent processing for enterprise, data center, wireline and wireless networks and Enea, offering a broad portfolio of integrated software-compatible processors with up to 100 Gbps performance for use in the enterprise, data center , Broadband and access and service provider equipment Cavium Q3 2017 net income of 252 million US dollars, gross profit margin 54.6%, total cash and cash equivalents of 152.7 million US dollars in August 2016, Cavium Acquires QLogic, a provider of server and storage networking products, for about $ 15.50 a share, with annual revenues of $ 1 billion.

Marvell, a leading fabless semiconductor company that sells nearly a billion chips per year, leverages leading-edge intellectual property and deep system-level knowledge to enable Marvell's semiconductor solutions to keep businesses, cloud, automotive, industrial and consumer Marvell Revenue Reaches $ 2.3 Billion in Cash and Equivalents for $ 1.67 Billion in FY 2017. Revenues for the second quarter of fiscal 2018 amounted to $ 605 million and gross profit margin was approximately 60.4%