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Nvidia to Buy Chip Designer Mellanox

By Suprotik Sinha - March 12, 2019 2 Mins Read

Nvidia Corp said they will buy Mellanox for $6.8 billion, outbidding Intel Corp in a deal that would help the company to boost its Data Center

NVIDIA and Mellanox today announced that the companies have reached a definitive agreement under which NVIDIA will acquire Mellanox. According to the agreement, 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.

Once complete, the combination is expected to be immediately accreted to NVIDIA’s non-GAAP gross margin, non-GAAP earnings per share and free cash flow. The acquisition will unite two of the world’s leading companies in high performance computing.

“The emergence of AI (artificial intelligence) and data science, as well as billions of simultaneous computer users, is fuelling sky-rocketing demand on the world’s data centres,” said Nvidia Chief Executive Jensen Hung.

“But going out and buying an asset right now, immediately after the recent spate of guide downs may raise a few eyebrows,” Rasgon added. “It will probably spark questions as to whether Nvidia sees anything changing regarding the growth trajectory of their core data center business.”

“We’re excited to unite NVIDIA’s accelerated computing platform with Mellanox’s accelerated networking platform under one roof to create next-generation datacenter-scale computing solutions. I am particularly thrilled to work closely with the visionary leaders of Mellanox and their people to invent the computers of tomorrow. “We share the same vision for accelerated computing as NVIDIA,” said Eyal Waldman, founder and CEO of Mellanox.



AUTHOR

Suprotik Sinha

Suprotik Sinha is the Global News Correspondent with OnDot Media. He writes about technologies and trending news in the global enterprise space. An animal lover, Suprotik, is a postgraduate from Symbiosis Institute of Mass Communication (SIMC) Pune. He carries two years of experience in mainstream broadcast media where he worked as a reporter with Ibn7 and Zee Media in Mumbai.

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