NVIDIA Corporation acquired Mellanox Technologies for $6.9 billion, a transaction completed in April 2020, structured as all cash.
Mellanox Technologies operates in Data center / networking, is based in Yokneam, Israel. Mellanox is a pioneer of high-performance datacenter interconnect technology, best known for originating InfiniBand and for a high-speed Ethernet product line. Its interconnects were used in more than half of the world's fastest supercomputers and across many hyperscale datacenters at the time of the deal. NVIDIA acquired it by merger for $125.00 per share in cash. The two companies had a long prior history of collaboration in high-performance computing.
NVIDIA framed the combination as uniting its accelerated-computing platform with Mellanox's interconnects so that datacenters could be architected as single, giant compute engines, optimizing performance and utilization across compute, networking and storage. Management said the deal would be immediately accretive to non-GAAP gross margin, non-GAAP EPS and free cash flow.
Interconnect leadership complementary to NVIDIA GPUs; combined footprint powered over 250 of the TOP500 supercomputers. Optimize datacenter-scale workloads across the full compute, networking and storage stack; expected immediate accretion to non-GAAP gross margin, EPS and free cash flow. Became the foundation of NVIDIA's Networking business unit.
The emergence of AI and data science, as well as billions of simultaneous computer users, is fueling skyrocketing demand on the world's datacenters.Jensen Huang, Founder and CEO, NVIDIA
Advisory firms were not disclosed for this transaction.