Marvell to Acquire Inphi to Accelerate Growth and Leadership in Cloud and 5G

Marvell Technology Group, a leader in infrastructure semiconductor solutions has decided to acquire Inphi, a leader in high-speed data movement. Announced under a definitive agreement, Marvell will acquire Inphi in cash and stock transaction. The transaction consideration will comprise $66 in cash and 2.323 shares of stock of the combined company for each Inphi share. Upon completing the transaction, Marvell shareholders will own 83 percent of the combined company while Inphi stockholder will have 17 percent.

In addition, Marvell will revamp the joined company to be recognized as a domiciled company in the US. It will lead to the formation of the US semiconductor powerhouse with an enterprise value of approximately $40 billion. 

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Inphi has a stronghold in the industry when it comes to a high-speed data interconnect platform. It has provided solutions for increased bandwidth and low power for the cloud data centers and global networks. Combined with Marvell’s storage, networking, processing portfolio, the combined company will be a leader in end-to-end technology and data infrastructure. 

The agreement also favors Marvell’s addressable market, strengthens the customer base, and pushes the company in hyper-scale cloud data centers and 5G infrastructure. 

“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.”

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The year 2020 has witnessed enterprises continue to embrace cloud computing. As per the Flexera 2020 State of the Cloud Report, around 93 percent of enterprises have a multi-cloud strategy while 87 have a hybrid cloud strategy. Twenty percent of businesses spent over $12 million per year on public clouds. Organizations are over budget for cloud expense by 23 percent average and excerpt to increase by 47 percent. Among the top players, AWS, Google, and Azure remain the top cloud providers for enterprises, and their container-as-a-service offerings are experiencing significant growth.

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