Stock News Alert: Marvell Technology Group Ltd. (NASDAQ:MRVL)

Marvell Technology Group Ltd. (NASDAQ:MRVL) spotted trading -15.52% off 52-week high price. On the other end, the stock has been noted 51.60% away from the low price over the last 52-weeks. The stock changed -3.89% to recent value of $21.74. The stock transacted 17319320 shares during most recent day however it has an average volume of 12621.68K shares. The company has 673.09M of outstanding shares and 631.13M shares were floated in the market.  

Marvell (NASDAQ:MRVL) reported that it has entered into definitive agreements to purchase Avera Semiconductor, the Application Specific Integrated Circuit (ASIC) business of GLOBALFOUNDRIES. This acquisition brings together Avera Semi’s leading custom design capabilities with Marvell’s advanced technology platform and scale, creating a leading ASIC supplier for wired and wireless infrastructure. The agreements include transfer of Avera’s revenue base, strategic design wins with leading infrastructure OEMs, and a new long-term wafer supply agreement between GLOBALFOUNDRIES and Marvell.

“Our acquisition of Avera enables us to offer the complete spectrum of product architectures spanning standard, semi-custom to full ASIC solutions,” said Matt Murphy, president and CEO of Marvell. “With their highly experienced design team and Marvell’s leading technology platform, we will be better positioned to capitalize on our expanding opportunity in wired and wireless infrastructure, starting immediately in the fast growing 5G base station market. In addition, we are looking forward to furthering our successful partnership with GLOBALFOUNDRIES in the coming years and beyond.”

“This transaction is another example of our commitment to focus on our core business of providing differentiated foundry offerings as a manufacturing service provider, while establishing deeper relationships with customers who are leaders in their respective sectors,” said Tom Caulfield, CEO at GLOBALFOUNDRIES.  “With this deal and our growing strategic partnership with Marvell, we will forge new opportunities for the teams of both companies to leverage GF’s broad set of offerings and capitalize on the 5G infrastructure market as well as other opportunities.  We look forward to becoming a strategic provider for Marvell for decades to come.”

Under the terms of the agreement, Marvell will pay GLOBALFOUNDRIES $650 million in cash at closing plus an additional $90 million in cash if certain business conditions are satisfied within the next 15 months. The transaction is expected to close by the end of Marvell’s fiscal year 2020 pending receipt of regulatory approvals and other customary closing conditions. The acquisition is expected to be accretive to Marvell’s non-GAAP earnings per share in the first full year following the close.

 Its earnings per share (EPS) expected to touch remained -135.60% for this year while earning per share for the next 5-years is expected to reach at 11.55%. MRVL has a gross margin of 50.90% and an operating margin of 1.50% while its profit margin remained -6.20% for the last 12 months. 

 According to the most recent quarter its current ratio was 2.2 that represents company’s ability to meet its current financial obligations. The price moved ahead of -9.98% from the mean of 20 days, -2.25% from mean of 50 days SMA and performed 13.82% from mean of 200 days price. Company’s performance for the week was -1.81%, -12.52% for month and YTD performance remained 34.28%.

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