Marvell gets Chinese regulatory approval for Cavium acquisition
The Committee on Foreign Investment in the United States (CFIUS) also has completed its review of the company’s previously announced merger transaction with Cavium and determined that there are no unresolved national security concerns with respect to the merger.
Last year in November, Marvell agreed to acquire all outstanding shares of Cavium common stock in exchange for consideration of $40.00 per share in cash and 2.1757 Marvell common shares for each Cavium share. Upon completion of the transaction, Marvell will become a leader in infrastructure with approximately $3.4 billion in annual revenue.
The transaction combines Marvell’s portfolio of leading HDD and SSD storage controllers, networking solutions and high-performance wireless connectivity products with Cavium’s portfolio of leading multi-core processing, networking communications, storage connectivity and security products. The combined product portfolios provide the scale and breadth to deliver comprehensive end-to-end systems for customers across the cloud data center, enterprise and service provider markets, and expands Marvell’s serviceable addressable market to more than $16 billion.
This transaction also creates an R&D innovation engine to accelerate product development, positioning the company to meet today’s massive and growing demand for data storage, heterogeneous computing and high-speed connectivity.
The transaction is expected to generate at least $150 to $175 million of annual run-rate synergies within 18 months post close and to be significantly accretive to revenue growth, margins and non-GAAP EPS.
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