Semiconductor maker Marvell Technology Group secured a deal to acquire rival Cavium for around $6 billion, as it looks to diversify its storage devices business with the addition of networking equipment.
“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 solutions,” Marvell said in a statement.
It added the combined product portfolios provide the scale and breadth to deliver comprehensive solutions for customers across the cloud data centre, enterprise and service provider markets, and expands Marvell’s addressable market to more than $16 billion.
Marvell claimed it will become a leader in infrastructure solutions with approximately $3.4 billion in annual revenue once the transaction is completed.
Matt Murphy, Marvell’s CEO (pictured), embarked on a restructure after taking charge in 2016, cutting jobs and looking to expand in areas including data centres and wireless communications.
Murphy will lead the combined company, and the leadership team will have strong representation from both companies.
Cavium produces semiconductors focused on intelligent processing in enterprise, data centres, cloud, wired and wireless service.
Marvell’s market capitalisation stands at $10 billion: Cavium’s $5.2 billion, Reuters reported.
The semiconductor market is currently a hotbed of activity in terms of mergers and acquisition, following Broadcom’s unexpected $130 billion bid to acquire Qualcomm, which is itself in the process of trying to tie-down a purchase of NXP Semiconductors.
Broadcom last week reiterated its commitment to completing its proposed acquisition of Qualcomm, despite the latter rejecting Broadcom’s record bid.