The rumors from earlier this month became a reality. Marvell Technologies announced today that it will purchase Cavium in a cash-and-stock deal that is estimated to be worth about $6 billion. The combined company will be an “information solutions powerhouse,” said Marvell President and CEO Matt Murphy during a call with investors about the deal.

The acquisition will combine Marvell’s storage, networking, and wireless chips for the enterprise, cloud, automotive, and industrial markets with Cavium’s programmable chip platforms for enterprises, data centers, and carrier networks. Murphy said the deal expands Marvell’s potential addressable market to more than $16 billion. In addition, the deal brings together a strong IP portfolio of more than 10,000 patents.

Murphy also said the combined company will have an expected $150 million to $175 million in annual run-rate of cost synergies within 18 months of closing.

According to the terms, Marvell will acquire all outstanding shares of Cavium common stock in exchange for $40 per share in cash. Plus, it will exchange 2.1757 Marvell common shares for each Cavium common stock. The boards of both companies have agreed to the deal, which now must get regulatory approval. The acquisition is expected to close in the first half of 2018.

Marvell is based in Bermuda but has its U.S. headquarters in Santa Clara, California. Cavium is based in San Jose, California. Murphy said he plans to merge the management teams of both firms. He will remain CEO, and Marvell CFO Jean Hu will be CFO of the combined company. Cavium co-founder and CEO Syed Ali will join Marvell’s board of directors and serve as a strategic advisor to the firm. Cavium co-founder and COO Raghib Hussain and Cavium VP of IC engineering Anil Jain also will remain with newly merged company.

Murphy said he plans to “honor the reputations” of both companies and create a new unified identity. However, he added that any details about the new company’s name, branding, and other integration plans will not be revealed until after the acquisition closes.

Although Marvell is based in Bermuda, the company is not expecting any regulatory hurdles. During the investor call, Marvell executives said there is little product overlap and minimal customer overlap so they don’t expect any challenges.

Broadcom recently announced plans to change the nationality of its corporate structure from Singapore to the United States. The move was done in advance of the close of its $5.9 billion acquisition of Brocade, which was finally completed last week.