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BRIEF-Marvell and Cavium to combine creating an infrastructure solutions powerhouse
November 20, 2017 / 12:23 PM / a month ago

BRIEF-Marvell and Cavium to combine creating an infrastructure solutions powerhouse

Nov 20 (Reuters) - Cavium Inc

* Marvell and Cavium to combine creating an infrastructure solutions powerhouse

* Cavium Inc - deal expected to generate at least $150 to $175 million of annual run-rate synergies within 18 months post close

* Cavium Inc - Marvell will pay Cavium shareholders $40.00 in cash and 2.1757 Marvell common shares for each share of Cavium common stock​ as per terms

* Cavium Inc - ‍deal represents a transaction value of approximately $6 billion​

* Cavium Inc - ‍Cavium shareholders are expected to own approximately 25 pct of combined company on a pro forma basis​ after deal close

* Cavium Inc - ‍Marvell intends to fund cash consideration with a combination of cash on hand from combined companies and $1.75 billion in debt financing​

* Cavium Inc - ‍transaction is not subject to any financing condition​

* Cavium Inc - ‍Matt Murphy will lead combined company​

* Cavium Inc - ‍deal significantly accretive to revenue growth, margins and non-GAAP EPS​

* Cavium Inc - ‍Cavium’s co-founder and CEO, Syed Ali, will continue with combined company as a strategic advisor and will join Marvell’s board of directors​

* Cavium Inc - deal ‍unanimously approved by boards of directors of Marvell Technology Group and Cavium​

* Cavium Inc - ‍Syed Ali, along with 2 additional board members from Cavium’s board, will join Marvell’s board of directors effective upon deal​ close

* Cavium Inc - ‍based on preliminary financial information, marvell expects revenue of $610 to $620 million​ for Q3

* Cavium Inc - ‍based on preliminary financial information, marvell expects non-GAAP earnings per share to be between $0.32 and $0.34​ for Q3

* Cavium Inc - Marvell has obtained commitments consisting of $850 million bridge loan commitment, $900 million committed term loan Source text for Eikon: Further company coverage:

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