Marvell in $6B Deal with Cavium, Uber Commits to Volvo Self-Driving Cars

Mukesh Buch
20 Nov, 2017
New York City

Acorda Therapeutics dropped Parkinson''s drug trials after death of patients. Dycom Industries profit tumbled 44%. Marvell Technology agreed to acquire smaller rival Cavium for $6 billion. Uber Technologies intends to purchase 24,000 self-driving taxis from Volvo.

[R]1:45 PM New York – Acorda Therapeutics dropped Parkinson''s drug trials after death of patients. Dycom Industries profit tumbled 44%. Marvell Technology agreed to acquire smaller rival Cavium for $6 billion. Uber Technologies intends to purchase 24,000 self-driving taxis from Volvo.[/R]

Tollbooth Index edged up 10.44 to 13,291.84.

Earnings Review

Acorda Therapeutics Inc ((ACOR)) soared 8.9% or $1.60 to $19.40 after the biopharmaceutical products maker said that it would stop developing its Parkinson’s disease drug tozadenant after reported deaths during the key testing.

Dycom Industries, Inc ((DY)) jumped 7.8% or $7.01 to $97.10 after the specialty contracting services provider said in the first-quarter ending on October 28 slid 0.2% from a year ago to $708.1 million.

Net income in the quarter tumbled 43.6% to $28.8 million or 90 cents per diluted share from $51.1 million or $1.59 in the same quarter last year.

Dycom forecasted fiscal fourth-quarter total contract revenues growth in the range of $645 million to $675 million and diluted earnings per share in the range of 15 cents to 27 cents.

Marvell Technology Group Ltd ((MRVL)) slid 7 cents to $20.23 after the U.S.-based chipmaker agreed to acquire smaller rival Cavium Inc for about $6 billion in a cash-and-stock deal.

Under the terms, Cavium investor will receive $40 per share and 2.1757 common shares of Marvell.

The transaction is expected to close in mid-2018.

“This is an exciting combination of two very complementary companies that together equal more than the sum of their parts,” said chief executive officer Matt Murphy.

Cavium Inc stock jumped 6.9% to $81.06.

Paypal Holdings Inc ((PYPL)) gained 21 cents to $76.59 after the digital payment services provider agreed to sell its domestic consumer credit receivable business of $5.8 billion to Synchrony Financial.

The deal is expected to close in the third quarter of 2018.

Uber Technologies Inc, the road transportation services application operator plans to purchase up to 24,000 self-driving XC90 SUVs from Volvo AB in 2019.