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Marvell to Buy Rival Chipmaker Cavium for About $6 Billion

  • Company is recovering after founders were pushed out
  • Acquisition is latest consolidation in semiconductor market
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Rolland, Hammond on the Marvell-Cavium Deal

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Marvell Technology Group Ltd., a chipmaker looking to build itself a future outside of a declining area of the market, has agreed to buy Cavium Inc. for about $6 billion.

The buyer will pay $40 in cash plus 2.1757 Marvell common shares for each Cavium share, according to a statement Monday. Marvell plans to use $1.75 billion in debt financing to fund the transaction. Cavium shares rose to a record Monday, while Marvell also gained.