agreed to acquire
Tuesday in a stock swap valued at around $2.7 billion.
Marvell, which provides the technology for gigabit and faster data communication rates, will issue 0.674 share for each Galileo share, or a total of 32.9 million shares. Galileo shares are valued at around $55.10 each in the deal, a 79% premium to their closing price Monday of $30.77.
Galileo shareholders and option holders will hold some 25% of the diluted ownership in the combined company, which will be named Marvell and be headquartered in Sunnyvale, Calif. Galileo, which produces routing, switching and systems management products for data and telecommunications systems, will continue operations in both Israel and San Jose, Calif., with its reporting structure essentially unchanged.
The combined company will integrate Marvell's industry-leading gigabit Ethernet Alaska PHY technology with Galileo's Galnet family of advanced Layer 2/3/4/5 switched Ethernet processors.