Thursday, November 23, 2017

Marvell to Pay $7.5 Billion For Cavium Co-founded by Pakistani-American NEDUET Alum

Marvell Technology announced on November 20 that it would buy Cavium in a $6 billion stock deal, according to CNBC News. The value of the deal jumped to $7.5 billion enterprise value at the close of market on November 22, 2017.

Raghib Husain
Raghib Husain, Pakistani-American cofounder of Cavium and an alumnus of NED University of Engineering Technology, sent the following email today confirming the deal to his friends:

"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."

Marvell said it will acquire all outstanding shares of Cavium common stock in exchange for consideration of $40.00 per share in cash and 2.1757 Marvell common shares for each Cavium share. Cavium shareholders are expected to own approximately 25% of the combined company on a pro forma basis. Marvell intends to fund the cash consideration with a combination of cash on hand from the combined companies and $1.75 billion in debt financing.

Cavium, Inc. designs and manufactures highly integrated semiconductor products that enable intelligent processing for networking, communication, and the digital home. Cavium offers a broad portfolio of integrated, software compatible processors ranging in performance from 10 Mbps to over 100 Gbps that enable secure, intelligent functionality in enterprise, data-center, broadband/consumer, wireless, access and service provider equipment.

Raghib, born to middle class parents in Karachi, Pakistan, received his bachelor's degree in computer science from NED University of Engineering in 1992. He has endowed the Muhammad Raghib Hussain Chair of Computer and Information System Engineering at his alma mater in Karachi

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1 comment:

NBRX said...

Happy Thanksgiving to you sir! Differences aside I'm sure there is lot more to thank for in this world.