CFIUS Likely Clearance: Arm Limited, Softbank Group Corp. and Marvell Technology Group, Ltd.

Status: Likely Clearance

Acquirer: Arm Limited (U.K.); Softbank Group Corp. (Japan)

Acquired: Marvell Technology Group, Ltd. (Bermuda)

Value: US$204 Million

Industry: Semiconductors; Network and Data Solutions

On June 5, 2019, Marvell Technology Group Ltd., a publicly traded Bermuda company (NASDAQ: MRVL), announced it has “entered a broader strategic partnership with Arm [Limited], a subsidiary of SoftBank Group, to accelerate the design and development of next-generation Marvell® ThunderX® server processor technology.” (Marvell Technology Group Ltd. Form 8-K, June 5, 2019, SEC Filing.) “[I]n connection with the execution of a Collaboration Agreement between the parties dated as of June 5, 2019,” Marvell “issued a warrant to purchase nine million (9,000,000) (subject to adjustment in certain cases) of the Company’s common shares, $0.002 par value, at an exercise price of $22.63 per share to Arm Limited (the “Warrant”).” (Id.) Clearance by CFIUS is a condition to the vesting of the Warrants. (Id.; see Warrant to Purchase Common Shares, Marvell Technology Group Ltd. Form 8-K, Ex-99.1, June 5, 2019, SEC Filing.)

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