A bit earlier than originally anticipated, Marvell Technology, Inc. (NASDAQ: MRVL) says it has closed its purchase of Inphi Corp. The cash and stock deal, originally announced last October with an estimated value of $10 billion, creates a combined Delaware corporation domiciled in the United States with an estimated enterprise value of $40 billion (see “Marvell to buy Inphi”).
“I am excited to welcome the Inphi team to Marvell and look forward to realizing the tremendous value creation potential of this combination for our customers, employees, and shareholders. Together we will have the portfolio, capabilities, and scale to expand Marvell’s leadership in its key growth end markets of 5G, cloud, and Automotive,” said Matt Murphy, president and CEO of Marvell. “I am also pleased that we are now organized as a U.S. company and we look forward to continuing to drive innovation in semiconductor technology critical to the nation’s data economy.” Marvell had been domiciled in Bermuda.
Former Inphi staffers are taking senior leadership roles in the combined company. Dr. Ford Tamer, now former president and CEO of Inphi, has taken a seat on the Marvell board of directors. Loi Nguyen, co-founder and vice president of Inphi, is now executive vice president, Optical & Copper Connectivity, at Marvell.
Marvell says it will provide an update on Inphi’s contribution to its first fiscal quarter results during its fiscal first quarter 2022 earnings conference call scheduled for June 7, 2021. At the time the purchase agreement was announced last October, Marvell expected to achieve annual run-rate synergies of $125 million within 18 months after the transaction closes, with the new assets becoming accretive to non-GAAP earnings per share by the end of the first year after the transaction’s close.
The closing is significantly earlier than Marvell originally expected, thanks in large part to receiving approval from China’s State Administration for Market Regulation (SAMR) more quickly than anticipated (see “Marvell resets closing date for Inphi acquisition after Chinese regulatory approval”). The company originally expected to consummate the agreement in the second half of this year.
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