Nvidia Finally Completes Acquisition of Mellanox for $7 Billion
Combining compute and networking for HPC, no layoffs according to Nvidia CEO
This is a Press Release edited by StorageNewsletter.com on April 29, 2020 at 2:25 pmNVIDIA Corporation completed the acquisition of Mellanox Technologies, Ltd., for a transaction value of $7 billion.
The acquisition, initially announced on March 11, 2019, unites two companies in high performance and data center computing. Combining NVIDIA’s computing expertise with Mellanox’s high-performance networking technology, the move will enable customers to achieve higher performance, greater utilization of computing resources and lower operating costs.
“The expanding use of AI and data science is reshaping computing and data center architectures,” said Jensen Huang, founder and CEO, NVIDIA. “With Mellanox, the new NVIDIA has end-to-end technologies from AI computing to networking, full-stack offerings from processors to software, and significant scale to advance next-gen data centers. Our combined expertise, supported by a rich ecosystem of partners, will meet the challenge of surging global demand for consumer Internet services, and the application of AI and accelerated data science from cloud to edge to robotics.”
Eyal Waldman, founder and CEO, Mellanox, said: “This is a powerful, complementary combination of cultures, technology and ambitions. Our people are 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.”
The acquisition is expected to be immediately accretive to NVIDIA’s non-GAAP gross margin, non-GAAP EPS and free cash flow, inclusive of incremental interest expense related to NVIDIA’s recent issuance of $5 billion of notes.
Read also:
Mellanox: Fiscal 1Q20 Financial Results
Record revenue at $429 million up 13% Q/Q and 40% Y/Y, acquisition by Nvidia on or about today
April 27, 2020 | Press Release
Acquisition of Mellanox by Nvidia Approved by China’s Antitrust Authority
Closing expected on or about April 27, 2020
April 20, 2020 | Press Release
Confirmation: Nvidia Acquired Mellanox, for $6.9 Billion
To combine computing and connectivity for HPC
March 13, 2019 | Press Release
Nvidia Nears Deal to Acquire Mellanox
For more than $7 billion in cash
March 11, 2019 | In Brief
Intel Bids $5.5-$6 Billion to Buy Mellanox
In cash and stock
January 31, 2019 | In Brief
Microsoft Interested in Buying Mellanox
Key client of Israeli firm
January 11, 2019 | In Brief
Xilinx Works With Barclays to Acquire Mellanox
At about $5.5 billion
November 14, 2018 | In Brief
Comments
Jensen Huang, CEO of Nvidia (with workforce of 13,700 employees), wrote a letter shared by human resources chief, Shelly Cerio. Abstract:
"In response to the falling economy, we announced that we are pulling in our annual review process. Immediately I received questions about whether we are also planning a layoff. NO - precisely the opposite.
"We are accelerating your raise to put some extra money in your hands. we can put tens of millions more dollars in the hands of our families in the coming months."
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