Marvell Technology has agreed to buy Cavium Networks for about USD 6 billion in a cash and stock deal, Bloomberg reported, citing sources familiar with the transaction, who added the deal could be announced very soon.
Market watchers said Marvell is trying to remake itself after a corporate scandal which led to the exit of its founders under pressure from activist investor Starboard. This would be the largest acquisition to date for Marvell. Cavium, a maker of network processors, is one of several companies trying to use ARM equipment to break Intel’s hold on the server microprocessor market.
Marvell didn’t immediately respond to requests for comment outside normal business hours. Cavium declined to comment.
