Nvidia closes in on Mellanox deal in data center push

Nvidia close to Mellanox deal

Nvidia close to Mellanox deal

Xilinx Inc was also part of the process, sources said.

"The deal will strengthen NVDA's ability to offer datacenter-scale computing solutions optimized across computing, networking and storage, that can accelerate datacenter-scale workloads", Seyrafi said in a note distributed Monday. Nvidia and Mellanox aren't strangers; they have previously worked together on several products including the likes of the Nvidia DGX-2, as well as the #1 and #2 U.S. supercomputers - Summit and Sierra.

A spokesman for Mellanox declined to comment. "It will probably spark questions as to whether Nvidia sees anything changing regarding the growth trajectory of their core data center business".

Nvidia Corp has submitted an offer to buy Israeli chip designer Mellanox, the Calcalist financial news website said on Sunday.

More news: AOC Draws Massive Crowd at SXSW
More news: Trump says his ‘Tim Apple’ gaffe was just more fake news
More news: NASCAR summons Suarez, McDowell after fight

This high-profile interest is hardly surprising; Mellanox is renowned for its high-performance computing and networking tech and makes adapters, switches, and chips for InfiniBand and Ethernet network devices that are used in more than half of the world's publicly-listed fastest computers. Mellanox shares are traded on the Nasdaq at a company valuation of $5.9 billion, after the share surged 51% in the past 12 months amid speculation of an acquisition and as the firm reported record revenues in 2018.

Nvidia gets more revenue diversification and data center sales. Nvidia, based in Santa Clara, California has grown at a rapid pace in the past few years, under CEO Jensen Huang, but a slowdown in China and a fading cyrptocurrency craze have started to weigh on its sales in recent quarters. The transaction has been approved by both companies' boards of directors and is expected to close by the end of CY 2019.

Mellanox has been around since 1999 and was founded by former Intel executives.

The acquisition is a win for the New York-based activist investor Starboard Value LP, which owns a 5.8 percent stake and had reached a deal with Mellanox a year ago over the composition of its board.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.