Marvell to buy Cavium for United States dollars 6 bln

Brunilde Fioravanti
Novembre 20, 2017

The semiconductor manufacturing industry looks to be consolidating further with the news that chipmaker Marvell Technology Group Ltd. has agreed to acquire its rival Cavium Inc. for $6 billion. The companies plan to announce the deal as soon as Monday, the report specified.

Marvell didn't immediately respond to requests for comment outside normal business hours. The potential deal came to light November 3 when a Wall Street Journal report said the companies were in "advanced" talks.

Market watchers said Marvell is trying to remake itself after a corporate scandal which led to the exit of its founders under pressure from activist investor Starboard.

The deal will allow Marvell to diversify away from its traditional storage devices business following an agreement with Starboard Value LP past year to accept three new directors nominated by the activist hedge fund to its board.

Marvell CEO Matt Murphy, who took the reins of the chipmaker a year ago, has embarked on a restructuring of the company, slashing jobs and seeking to add offerings in areas such as data centers and wireless communications.

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