According to sources, Raghib Hussain, a Pakistani-American, has sold his company Cavium to Marvell, a chipmaker, in a $6 billion cash and stock deal.
Hussain graduated from NED Karachi and co-founded Cavium with his friend Syed B. Ali. And in 2007, they sold the company to the public for $600 million.
According to insiders, Marvell Technology offered over $6 billion for Cavium in a cash-and-stock deal that will form a chipmaker capable of competing against Intel and other industry titans.
Cavium stockholders are expected to own approximately 25% of the amalgamated business. Matt Murphy, Marvell’s CEO, will lead the combined firm, with Syed Ali Cavium, co-founder and CEO of Cavium, serving as a strategic consultant and panellist.
Cavium designs chips for wired and wireless communications devices and is the market leader in networking technology, while Marvell designs application-specific chips and integrated circuits for data storage. The united company will save money and provide prospective consumers with a more trustworthy bundle.
Hussain wrote to his friends in an email:
“Now that the news is public, you must have realised why I’ve been so busy recently. Today is a day of conflicting emotions for me. It’s the equivalent of sending a 17-year-old to college. In any case, I’m grateful to God for allowing us to have this experience.”
