Nvidia to Acquire Mellanox, for $6.9 Billion

nvidiaNvidia (NASDAQ: NVDA), the Santa CLara, CA-based inventor of the GPU, acquired Mellanox (NASDAQ: MLNX), an Israeli/US supplier of end-to-end Ethernet and InfiniBand smart interconnect solutions and services for servers and storage. 

Pursuant to the deal, Nvidia will acquire all of the issued and outstanding common shares of Mellanox for $125 per share in cash, representing a total enterprise value of approximately $6.9 billion.

The acquisition aims to unite two of the world’s leading companies in high performance computing (HPC). Together, Nvidia’s computing platform and Mellanox’s interconnects power over 250 of the world’s TOP500 supercomputers. They have as customers every major cloud service provider and computer maker.

Led by Jensen Huang, founder and CEO, Nvidia is the inventor of the GPU, which creates interactive graphics on laptops, workstations, mobile devices, notebooks, PCs, and more.

Led by Eyal Waldman, founder and CEO, Mellanox is a supplier of end-to-end Ethernet and InfiniBand smart interconnect solutions and services for servers and storage. The company’s offers of fast interconnect products include adapters, switches, software and silicon that accelerate application runtime and maximize business results for a wide range of markets including high performance computing, enterprise datacenters, Web 2.0, cloud, storage and financial services.

The two companies have collaborated for many years, building the world’s two fastest supercomputers, Sierra and Summit, operated by the U.S. Department of Energy. Many of the world’s top cloud service providers also use both Nvidia GPUs and Mellanox interconnects. Once the combination is complete, Nvidia intends to continue investing in local excellence and talent in Israel, one of the world’s most important technology centers.

FinSMEs

12/03/2019

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