NVIDIA Completes Acquisition of Mellanox

NVIDIA has announced the completion of its acquisition of Mellanox Technologies, Ltd., for a transaction value of $7 billion.

The acquisition, initially announced on March 11, 2019, unites two of the leading 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 use of computing resources and lower operating costs.

“The expanding use of AI and data science is reshaping computing and data center architectures,” says Jensen Huang, founder and CEO of 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-generation 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.”

“This is a powerful, complementary combination of cultures, technology and ambitions,” says Eyal Waldman, founder and CEO of Mellanox. “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.”

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.

Sources: Press materials received from the company and additional information gleaned from the company’s website.

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