Cavium to Demonstrate Leading Datacenter, HPC and Next-generation Cloud Infrastructure Solutions at Red Hat Summit 2017

SAN JOSE, CA – May 2, 2017 – Cavium, Inc. (NASDAQ: CAVM), a leading provider of semiconductor products that enable secure and intelligent processing for enterprise, datacenter, cloud, wired and wireless networking, will demonstrate leading datacenter, HPC and next-generation cloud infrastructure solutions with ThunderX® running on Red Hat operating systems and applications at Red Hat Summit 2017. The conference will be hosted at the Boston Convention and Exhibition Center from May 2nd - 4th.

Red Hat Summit is the premier open source technology event to showcase the latest and greatest in cloud computing, platform, virtualization, middleware, storage, and systems management technologies.

The ThunderX product family is Cavium’s 64-bit ARMv8-A server processor for datacenter and cloud applications, and features high-performance custom cores, single- and dual-socket configurations, high memory bandwidth and large memory capacity. The product family also includes integrated hardware accelerators, integrated feature-rich high bandwidth network and storage IO, fully virtualized core and IO, and scalable high bandwidth, low latency Ethernet fabric, which affords ThunderX best-in-class ARMv8-A performance per dollar. They are fully compliant with ARMv8-A architecture specifications as well as ARM‘s SBSA and SBBR standards, and widely supported by industry-leading OS, Hypervisor and Software tool and application vendors.

Cavium will present the following product demonstrations in the ARM Ecosystem Showcase booth #426:

• ThunderX & ThunderX2™: 64–bit ARMv8–based SoC family of workload–optimized processors with a range of SKUs and form factors optimized for scale out workloads including volume compute, storage, secure compute and networking running Red Hat Enterprise Linux OS and key cloud workloads.
• Cavium OEM and Cloud partners will be presenting ThunderX platform demonstrations and ThunderX Web Hosting Solutions.
• Cavium Open Source and Application partners will be demonstrating software applications and expanding ARM server software ecosystem availability and maturity.

Cavium will also be participating at the Red Hat hosted panel session on ARM-based datacenters on Wednesday, May 3rd at 11:30 a.m. EDT in the Partner Theatre. A number of Cavium partners will also be participating at this panel including Packet, Linaro and ARM.

To schedule a meeting with Cavium, please contact your local sales account manager or Sales@cavium.com. Please enter Meeting at Red Hat Summit 2017.

About Cavium
Cavium, Inc. (NASDAQ: CAVM), offers a broad portfolio of infrastructure solutions for compute, security, storage, switching, connectivity and baseband processing. Cavium’s highly integrated multi-core SoC products deliver software compatible solutions across low to high performance points enabling secure and intelligent functionality in Enterprise, Datacenter and Service Provider Equipment. Cavium processors and solutions are supported by an extensive ecosystem of operating systems, tools, application stacks, hardware reference designs and other products. Cavium is headquartered in San Jose, CA with design centers in California, Massachusetts, India, Israel, China and Taiwan.

Media Contact:
Angel Atondo
Sr. Marketing Communications Manager
Telephone: +1 408-943-7417
Email: angel.atondo@cavium.com 

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Cavium to Acquire QLogic

• Opportunity to drive significant growth at scale in data center and storage markets
• Substantial customer and revenue diversification
• Transaction enterprise value of $1 billion
• $45 million of identified annualized cost synergies to be realized by the end of 2017
• $0.60 to $0.70 accretive to Cavium’s CY 2017 non-GAAP EPS

San Jose and Aliso Viejo, CA, June 15, 2016 – Cavium, Inc. (NASDAQ:CAVM) (“Cavium”), a leading provider of semiconductor products that enable intelligent processing for enterprise, data center, cloud, wired and wireless networking, and QLogic Corp. (NASDAQ:QLGC) (“QLogic”), a leading supplier of high performance networking infrastructure solutions, today announced that they have entered into a definitive agreement for Cavium to acquire all of the outstanding QLogic common stock for approximately $15.50 per share, comprised of $11.00 per share in cash and 0.098 of a share of Cavium common stock for each share of QLogic common stock (valued at approximately $4.50 based on the volume weighted average Cavium trading price for the three trading days beginning June 10, 2016), through an exchange offer. The transaction values QLogic at approximately $1.36 billion in equity value, inclusive of approximately $355 million of cash on QLogic’s balance sheet, and has been unanimously approved by the boards of directors of both companies.

The acquisition provides:

• Opportunity to drive significant growth at scale in data center and storage markets: QLogic's leading portfolio of advanced connectivity and storage solutions is highly complementary to Cavium’s extensive portfolio of networking, compute, and security solutions. The combination enables Cavium to offer a complete end-to-end offering to customers in Enterprise, Cloud, Data Center, Storage, Telco and Networking markets. QLogic adds an incremental $2+ billion market opportunity for Cavium.

• Substantial customer and revenue diversification: The combined customer base includes market leading OEMs and end-customers across a broad set of end markets that diversifies Cavium’s revenue and presents a unique opportunity to accelerate further growth.

• $0.60 to $0.70 of accretion to Cavium’s CY 2017 non-GAAP EPS: The combined company will have nearly $900 million in LTM revenue, with strong profitability and cash flow generation. There are $45 million of identified annualized cost synergies across COGS and operating expenses expected to be realized by the end of 2017. The transaction is expected to create significant value for the shareholders of both companies.

“Today’s acquisition of QLogic is highly complementary and strategic to Cavium and it creates a diversified pure-play infrastructure semiconductor leader,” stated Syed Ali, President and Chief Executive Officer of Cavium.  “QLogic’s industry leading products extend our market position in data center, cloud and storage markets, and further diversifies our revenue and customer base. In addition to the compelling strategic benefits, the manufacturing, sales and operating synergies will create significant value for our shareholders.”

“QLogic with Cavium is a winning combination for customers and employees and is financially compelling for QLogic shareholders,” said Christine King, Executive Chairman of QLogic. “The scale of operations of a nearly $1 billion revenue business will allow the combined company to deliver better solutions for customers and create more career opportunities for employees. Shareholders will benefit from both the immediate premium, as well as the opportunity to participate in the long-term value creation from the combined company’s strong growth prospects.”

The transaction will be funded with a combination of $220 million balance sheet cash, $750 million of committed financing, which includes $650 million of term loan and $100 million of short-term bridge debt, and $400 million in new Cavium equity.

Under the terms of the definitive merger agreement, a wholly-owned subsidiary of Cavium will commence an exchange offer to acquire all of the outstanding shares of QLogic common stock for $11.00 in cash and 0.098 of a share of Cavium common stock (approximately $4.50 per share based on the volume weighted average Cavium trading price for the three trading days beginning June 10, 2016) for each share of QLogic common stock tendered in the exchange offer. Upon satisfaction of the conditions to the exchange offer, and after the shares tendered in the exchange offer are accepted for payment, the agreement provides for the parties to effect, as promptly as practicable, a merger, which would not require a vote of QLogic's stockholders, and which would result in each share of QLogic common stock not tendered in the exchange offer being converted into the right to receive $11.00 in cash and 0.098 of a share of Cavium common stock. The transaction is expected to close in the third quarter of calendar year 2016 pending customary closing conditions, including the tender into the exchange offer by QLogic stockholders of shares representing at least a majority of the outstanding shares of QLogic common stock, and the receipt of relevant regulatory approvals, including the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.

J.P. Morgan acted as exclusive financial adviser and provided a financing commitment to Cavium; Skadden, Arps, Slate, Meagher & Flom LLP acted as Cavium’s legal counsel. Qatalyst Partners acted as exclusive financial adviser to QLogic and O'Melveny & Myers LLP acted as QLogic’s legal counsel.

Conference Call
Cavium management will host a conference call to discuss details of the transaction. A live webcast and the accompanying presentation relating to the transaction will be available in the "Investors" section of Cavium’s website at http://www.Cavium.com in advance of the conference call.

Conference call date: June 15, 2016
Time: 2:00pm Pacific (5:00pm Eastern)
Dial in #: US 888-576-4398, International +1 719-325-2281 
Passcode is 7994851

A replay of the call will be available for one week by dialing 888-203-1112 (US) or +1 719-457-0820 (International) and the passcode is 7994851. A webcast of the conference call will also be available in the "Investors" section of Cavium’s website at http://www.cavium.com.

About Cavium
Cavium is a leading provider of highly integrated semiconductor products that enable intelligent processing in enterprise, data center, cloud, wired and wireless service provider applications. Cavium offers a broad portfolio of integrated, software compatible processors ranging in performance up to 100 Gbps that enable secure, intelligent functionality in enterprise, data center, broadband and access & service provider equipment. Cavium’s processors are supported by ecosystem partners that provide operating systems, tool support, reference designs and other services. Cavium’s principal offices are in San Jose, California with design team locations in California, Massachusetts, India, and China. For more information, please visit: http://www.Cavium.com.

About QLogic
QLogic is a global leader and technology innovator in high performance server and storage networking connectivity products. Leading OEMs and channel partners worldwide rely on QLogic for their server and storage networking solutions. QLogic is headquartered in Aliso Viejo, California, with offices in Mountain View, California, India and Israel. For more information, visit www.QLogic.com.

Cavium Contact
Angel Atondo
Sr. Marketing Communications Manager
Telephone: +1 408-943-7417
Email: angel.atondo@cavium.com

QLogic Contact
Doug Naylor​​​​​​​​
Investor Contact
Tel: (949) 542-1330​​​​​
Email: doug.naylor@QLogic.com

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