Why Shares of Cavium Networks Popped Today
Shares of Cavium Networks (NASDAQ: CAVM) rose on Monday after the company agreed to be acquired by Marvell Technology (NASDAQ: MRVL). This comes after reports of talks between the two companies in early November. At 3:30 p.m. EST, Cavium stock was up about 10%, while shares of Marvell were up about 5%.
Marvell has agreed to pay $40 in cash and 2.1757 Marvell shares for each outstanding share of Cavium, based on a purchase price of $80 per share. The transaction is valued at roughly $6 billion, and Cavium shareholders will own about 25% of the combined company after the deal closes.
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Source: Fool.com
