Marvell to acquire Inphi in $10 bln chip deal

Marvell Technology Group has agreed to buy peer Inphi Corp in a $10 billion cash-and-stock deal aimed at broadening Marvell's footprint in data centers and 5G network infrastructure. Marvell competes against Broadcom Inc to supply chips that move data around on copper-based cables. But Inphi designs chips that move data over fiber-optic cables hundreds of times faster than copper cables.

Inphi has also won deals to help Microsoft string together its data centers with high-speed optical connections and to connect various parts of 5G networks.

Under the deal, Marvell will give Inphi shareholders $66 in cash and 2.32 shares of stock in the combined company for each share of Inphi. After the deal, Marvell shareholders will own about 83% of the combined company, with Inphi shareholders owning about 17%.

Marvell plans to use balance sheet cash and debt to fund the deal, taking on about $4 billion in new debt in connection with the transaction with financing commitments from JPMorgan Chase & Co.

Marvell is headquartered in Silicon Valley, it's currently domiciled in Bermuda. After the transaction, both Marvell and Inphi will become subsidiaries of a new U.S.-domiciled holding company. The deal is expected to close in the second half of 2021.