According to a Marvell Technologies news release, the company is planning to acquire Inphi with a mix of cash and stock. The offer includes $66 in cash and 2.323 shares of MRVL stock for each share of IPHI stock.
The offer from Marvell Technologies values IPHI stock at roughly $157.83 per share based on MRVL stock’s closing price of $39.53 per share on Wednesday. It also represents a roughly 42.2% premium over the closing price for Inphi shares yesterday.
Marvell Technologies says that it will be using cash on hand, as well as additional funding, to complete this deal. It has secured debt financing commitments from JPMorgan Chase Bank, N.A. for the deal.
Matt Murphy, president and CEO of Marvell Technologies, said this about the news.
“Our acquisition of Inphi will fuel Marvell’s leadership in the cloud and extend our 5G position over the next decade. 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 Technologies and Inphi still need to complete customary closing conditions before the deal is complete. The two companies are expecting the acquisition to close in the second half of 2021.
The Marvell Technologies acquisition news comes on the same day that Inphi released its earnings report for the third quarter of 2020.
MRVL stock was down 5.1% as of Thursday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.