Marvell Technology Buys Fellow Chipmaker Cavium in $6 Billion Deal

Marvell Technology (MRVL) is buying fellow chip maker Cavium (CAVM) in a cash-and-stock deal valued at approximately $6 billion.

The deal announced Monday could create a rival to Intel (INTC) and other major computerchip producers.

Cavium shareholders will receive $40 per share and 2.1757 Marvell common shares for each Cavium share they own.

Cavium stockholders are expected to own about 25 percent of the combined company.

Marvell CEO Matt Murphy will lead the combined company, with Cavium co-founder and CEO Syed Ali serving as a strategic adviser and board member.

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SOURCE: CBS News