Marvell Technology Group Ltd. (NASDAQ:MRVL), Inphi Corporation (NYSE:IPHI) – Chip Merger-Frenzy Continued: Marvell Said To Be Nearing $10B Purchase Of Inphi
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.
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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