ISSI deal at $19.25/share (prior to bidding contest with CY) implied a 2016E P/E valuation of ~14.8x P/E (deal price net of $3.60/share cash); $23.00 deal price values ISSI at 19.0x cash adjusted P/E.
MRVL has ~$4.85/share cash & ST investments and no debt; MC at $13/share is $6.7B. A 15x-19x 2016E P/E multiple implies a MRVL takeover value (using $0.72 adjusted EPS) of $15.65-$18.50/share (~17/share midpoint) or ~25%-48% price premium to the $12.50/share MRVL closing price on July 10,
The FSL and BRCM deal multiples ($11.8B and $37.0B announced deal values and merging with similar-sized merger partners), based on current market prices are both ~14.5x 2016E adjusted P/E. An acquisition (vs. a "merger-of-almost-equals") would likely command a premium multiple.
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MRVL Quick Comment - Stock hit ~$16.50/share in mid-1Q15. China government is focused on strategic acquisitions in semiconductor industry.