Marvell Tech buys chip-maker for $US6b

Chipmaker Marvell Technology will buy Cavium for $US6 billion in a deal that could create a rival to Intel and other big computer chip producers.

Marvell Technology is buying fellow chip-maker Cavium in a cash-and-stock deal valued at approximately $US6 billion.

The deal announced on Monday could create a rival to Intel and other major computer chip producers.

Cavium shareholders will receive $US40 per share and 2.1757 Marvell common shares for each Cavium share they own.

Cavium stockholders are expected to own about 25 per cent of the combined company.

Marvell chief executive Matt Murphy will lead the combined company, with Cavium co-founder and CEO Syed Ali serving as a strategic adviser and board member.