Science & Technology

/

Knowledge

Chipmaker Marvell to buy rival Cavium for $6 billion

Rex Crum, The Mercury News on

Published in Science & Technology News

SAN JOSE, Calif. –– Marvell Technology Group said Monday that it would acquire Cavium for $6 billion in a deal that will bring together two rivals in the market for high-end chips used in data centers, wireless communications and self-driving cars.

Marvell, based in Hamilton, Bermuda, has its U.S. headquarters in Santa Clara.

The acquisition is the latest in a line of shakeups among semiconductor makers.

Last week, Qualcomm turned down a proposed $103 billion takeover bid by communications chipmaker Broadcom. Broadcom has said it intends to continue with its acquisition plans. Broadcom is also in the process of acquiring Brocade Communications for $5.5 billion, while Qualcomm is in the middle of a $38 billion bid to buy NXP Semiconductors to expand further in the automotive-chip market.

Marvell's acquisition of Cavium also comes more than a year after Marvell's founders, the husband-and-wife team of CEO Sehat Sutardja and President Weili Dai, were forced out of the company in an accounting irregularity scandal. Activist investor Starboard Value Fund had led the push for reform at Marvell after acquiring a 7 percent stake in the company.

 

(c)2017 The Mercury News (San Jose, Calif.)

Visit The Mercury News (San Jose, Calif.) at www.mercurynews.com

Distributed by Tribune Content Agency, LLC.

 

Comments

blog comments powered by Disqus