Marvell Technology Group Ltd., which is a leading supplier of HDD and SSD storage controllers along with wireless and Ethernet components, agreed to acquire Cavium for $40.00 per share in cash and 2.1757 Marvell common shares for each Cavium share, representing a transaction value of $6 billion. Current Cavium shareholders would own approximately 25% of the combined company.
Cavium, which is based in San Jose, California, offers a portfolio of multi-core processing, networking communications, storage connectivity and security silicon solutions. For Q3 2017, Cavium reported net revenue of $252.0 million, a 4.1% sequential increase from the $242.1 million reported in the second quarter of 2017, and a GAAP net loss of $6.2 million, or ($0.09) per diluted share.
Marvell, which is based in nearby Santa Clara, California but has its corporate headquarters in Bermuda, was founded in 1995 and has over 5,000 employees and over 9,000 patents. For its most recent fiscal quarter, Marvell reported sales of $605 million, and GAAP net income from continuing operations of $135 million, or $0.26 per share. The company underwent a restructuring in October 2016.
Marvell said the acquisition will give it scale and breadth to deliver end-to-end solutions across the cloud data center, enterprise and service provider markets.
“This is an exciting combination of two very complementary companies that together equal more than the sum of their parts,” said Marvell President and Chief Executive Officer, Matt Murphy. “This combination expands and diversifies our revenue base and end markets, and enables us to deliver a broader set of differentiated solutions to our customers. Syed Ali has built an outstanding company, and I’m excited that he is joining the Board. I’m equally excited that Cavium’s Co-founder Raghib Hussain and Vice President of IC Engineering Anil Jain will also join my senior leadership team. Together, we all will be able to deliver immediate and longterm value to our customers, employees and shareholders.”
The companies expect at least $150 to $175 million of annual run-rate synergies within 18 months post close.
In response to the DoJ suit, David R. McAtee II, Senior Executive Vice President and General Counsel, AT&T stated: “Today’s DOJ lawsuit is a radical and inexplicable departure from decades of antitrust precedent. Vertical mergers like this one are routinely approved because they benefit consumers without removing any competitor from the market. We see no legitimate reason for our merger to be treated differently. Our merger combines Time Warner’s content and talent with AT&T’s TV, wireless and broadband distribution platforms. The result will help make television more affordable, innovative, interactive and mobile. Fortunately, the Department of Justice doesn’t have the final say in this matter. Rather, it bears the burden of proving to the U.S. District Court that the transaction violates the law. We are confident that the Court will reject the Government’s claims and permit this merger under longstanding legal precedent.”
Cavium, which is based in San Jose, California, offers a portfolio of multi-core processing, networking communications, storage connectivity and security silicon solutions. For Q3 2017, Cavium reported net revenue of $252.0 million, a 4.1% sequential increase from the $242.1 million reported in the second quarter of 2017, and a GAAP net loss of $6.2 million, or ($0.09) per diluted share.
Hal Hess, American Tower’s EVP and President, EMEA and Latin America, stated, “We are pleased to close this transaction, which we expect not only to enhance the value of our existing tower portfolio in Mexico, but also to better position American Tower to capture a larger share of future urban 4G network densification efforts and the eventual rollout of 5G.”
AISense's mission is to make voice conversations accessible and searchable. The company's technology is already being used for providing transcriptions for the Zoom Video Communications platform. AISense is planning to launch a consumer product in early 2018. The idea is to give people the power to store, search and share the details of their everyday conversations.
The company notes 140 customers, including CareerBuilder, Business Insider, OkCupid, Baidu and Giphy.
