IPHI - Marvell acquiring Inphi for $40B; Inphi shares soar 34%

Inphi (IPHI) shares soar 34% pre-market after formally announcing it will be acquired by Marvell (MRVL) in a cash and stock transaction with an enterprise value of $40B.The transaction includes $66 in cash and 2.323 shares of the combined company for Inphi holders. Marvell shareholders will have an 83% stake in the combined company.The deal is expected to close in H2 2021. Marvell will finance the deal with cash on hand and obtained debt financing.After the deal closes, Inphi CEO Ford Tamer will join Marvell's board.Marvell says the purchase positions it for leadership in cloud and extends its 5G reach, expanding the company's TAM to $23B and accelerating market growth to 12% CAGR.The combination will be accretive to revenue growth and margins and will double Marvell's number of $100M+ cloud & networking customers to 8."Our acquisition of Inphi will fuel Marvell's leadership in the cloud and extend our 5G position over the next decade," says Marvell CEO Matt

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Marvell acquiring Inphi for $40B; Inphi shares soar 34%