Marvell Shareholders Approve Acquisition Of Inphi

Marvell Technology Group Ltd reported that 99% of its shareholders voted in favor of the proposed acquisition of Inphi Corporation. The vote also approves the reorganization of the combined company Read More... The post Marvell Shareholders Approve Acquisition Of Inphi appeared first on TipRanks Financial Blog.

Marvell Shareholders Approve Acquisition Of Inphi

Marvell Technology Group Ltd reported that 99% of its shareholders voted in favor of the proposed acquisition of Inphi Corporation. The vote also approves the reorganization of the combined company to be domiciled in Delaware, US. In a separate meeting held before the vote, Inphi’s shareholders also voted in agreement to merge with Marvell.

Marvell () expects the transaction to be sealed by April 20, 2021, after all the customary closing conditions are met.

“The final voting results on all agenda items for each company's special meeting will be disclosed in separate Current Reports on Form 8-K to be filed with the Securities and Exchange Commission”, read the company’s statement. (See Marvell stock analysis on TipRanks)

Susquehanna’s Analyst Christopher Rolland stated that the crux of his last call with Marvell’s CEO Matt Murphy boiled down to “optimism around the growing ASIC opportunity”. The semiconductor producer expects the acquisition of Inphi to be a welcome boost due to its strong optics position.

The analyst reported, “Overall, management believes custom ASICs (5G, Cloud, Auto) could be billions of dollars of opportunities five years from now. The Inphi addition and its strong optics position should be an accelerator and attractant for new ASIC businesses more broadly.”

However, Rolland sums it up as “Pipeline of hyperscale interest into Marvell’s ASIC portfolio is accelerating. Supply still an intermediate term issue, but the long-term growth story is strengthening.”

The analyst has since reiterated a Buy rating on the stock. He has increased the price target of the stock to $62 from $60, implying 21.9% upside potential to current levels.

Consensus on Wall Street is a Strong Buy based on 14 Buy and 4 Hold ratings. An average analyst price target of $54.94 implies 13.30% upside potential to current levels.

Marvell scores a “Perfect 10” on TipRanks’ Smart Score rating system. This implies that the stock is likely to outperform market expectations.

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