NVIDIA Acquires Mellanox Technologies For $7 Billion


NVIDIA acquires Mellanox

According to official NVIDIA news, today, the company announced that it has completed the acquisition of Mellanox Technologies, Ltd. The transaction price is $7 billion.

The acquisition was first announced on March 11, 2019. The two leading global high-performance and data center computing companies have joined together for a certain goal. That is to combine NVIDIA’s leading computing expertise with Mellanox’s high-performance networking technology. This should enable customers to get higher performance, higher utilization of computing resources, and lower operating costs.

Also read: China Approves Nvidia’s Most Expensive Acquisition In History

Jensen Huang, founder and CEO of NVIDIA said that by integrating Mellanox technology, the new NVIDIA will have end-to-end technology from artificial intelligence computing to the network, and full-stack products from processors to software, with sufficient scale to promote the next generation of data center technology.

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In his turn, Eyal Waldman, founder and CEO of Mellanox issued a statement. He said: ‘This is a powerful, complementary combination of cultures, technology, and ambitions. Our people are enormously enthusiastic about the many opportunities ahead. As Mellanox steps into the next exciting phase of its journey, we will continue to offer cutting-edge solutions and innovative products to our customers and partners. We look forward to bringing NVIDIA products and solutions into our markets, and to bringing Mellanox products and solutions into NVIDIA’s markets. Together, our technologies will provide leading solutions into compute and storage platforms wherever they are required.’

After this acquisition, it should immediately accretive to NVIDIA’s non-GAAP gross margin, non-GAAP EPS, and free cash flow. Of course, these predictions are made including incremental interest expense related to NVIDIA’s recent issuance of $5 billion of notes.

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