Marvell Acquires Cavium, NED Karachi Alum’s Company for $6 Billion

Marvell Acquires Cavium, NED Karachi Alum’s Company for $6 Billion. As the company offered around $6 billion for Cavium in a cash-and-stock deal that would create a chip maker to compete with Intel and other giants in the industry. Raghib Husain, a Pakistani-American, and Syed B. Ali has started this company back in 2000 and make it public in 2007.

Marvell Acquires Cavium, NED Karachi Alum’s Company for $6 Billion

Also Read: Qualcomm Sues Apple Again on Sharing Software with Intel

Shares of Marvell were down 0.8 percent to $20.14, while Cavium was up 7 percent at $81.14 in early trading. According to the Wall Street Journal, this deal will make Marvell worth about $14 billion.

Moreover, Cavium stockholders are expected to own about 25 percent of the combined company. Marvell CEO Matt Murphy will lead the combined company. However, Cavium co-founder and CEO Syed Ali will serve as a strategic adviser and board member.

Husain said:

“Now that the news is public you must have figured out why I was so busy lately. It’s a day with mixed feelings for me. It’s like sending 17yrs old off to college. In any case I’m thankful to Allah to give us opportunity to experience this.”

“To summarize: I started Cavium with Syed in late 2000, took public in 2007 with a Market cap of about $600M, ten years later in 2017, we are an established semiconductor company with revenue of $1B, 2000 employees and Market Cap of $5B and now consolidated for over $6.5B enterprise value. At the market close on Wednesday, the deal already valued at $7.5B (enterprise value). Alhamdolillah! I am thankful for everyone’s prayers and support.”

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Onsa Mustafa

Onsa is a Software Engineer and a tech blogger who focuses on providing the latest information regarding the innovations happening in the IT world. She likes reading, photography, travelling and exploring nature.

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