Marvell Tech to acquire Inphi in stock-and-cash deal that is second in chip sector this week – MarketWatch

Marvell Technology Group Ltd.
MRVL,
-4.67%
said Thursday it has agreed to acquire Inphi Corp.
IPHI,
-2.55%
in a cash and stock deal that will create a semiconductor company with an enterprise value of $40 billion. Under the terms of the deal, Marvell will pay $66 in cash and 2.323 shares for each Inphi share. Marvell shareholders will own 83% of the combined company, while Inphi shareholders own the remaining 17%. The deal is expected to close by the second half of 2021. “Combining Marvell’s storage, networking, processor, and security portfolio, with Inphi’s leading electro-optics interconnect platform, will position the combined company for end-to-end technology leadership in data infrastructure,” the companies said in a joint statement. The deal is the second in the chip sector this week, after AMD
AMD,
-3.14%
acquired Xilinx Inc.
XLNX,
-3.69%
in a $35 billion deal. Inphi shares soared 34% on the news, while Marvell was down 4.6%.