Semiconductor company Marvell Technology Group Ltd’s (NASDAQ: MRVL) talks to acquire chipmaker Inphi Corporation (NASDAQ: IPHI) for $10 billion are nearing a conclusion, according to Bloomberg.
What Happened: Of the total purchase consideration, 60% would be settled through stocks and the balance by cash, people familiar with the matter told Bloomberg. Official confirmation of the deal could come later on Thursday, unless the companies decide against pursuing the deal.
Inphi’s chips facilitate the high-speed movement of data across networks. With factors like the pandemic-induced lockdown, remote work culture, and the growing adoption of the cloud platforms, there could be a surge in demand for these chips. Esports is another segment that could drive growth for the chipmaker.
Why Does It Matter: Other recent mergers and takeover bids in the semiconductor business include Advanced Micro Devices Inc (NASDAQ: AMD) deal with Xilinx Inc (NASDAQ: XLNX) and Nvidia Corporations’s (NASDAQ: NVDA) acquisition of the U.K based Arm Ltd.
Earlier this week, AMD announced plans to buy Xilinx via an all- stock transaction valued at $35 billion. Whereas, Nvidia disclosed plans to acquire Arm Ltd for $40 billion in September.
Price Action: After a 4.68% fall during the regular trading session, MRVL gained 1.82% during after-hours at $40.25 per share.
IPHI stock closed 2.56% lower in the regular trading session but rebounded 0.93% during after-hours to close at $112.
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