Infiniband developer Mellanox Technologies Ltd. (Nasdaq:MLNX; TASE:MLNX) has acquired Danish optical interconnect component designer IPtronics A/S for $47.5 million in cash, subject to certain adjustments. The acquisition of IPtronics is Mellanox's second acquisition in a month, following the acquisition of US advanced silicon photonics optical interconnect technology developer Kotura Inc. for $82 million.
Mellanox will close the acquisition in the second half of 2013, and expects IPtronics to boost its non-GAAP earnings per share by $0.01-0.03 in 2014. The acquisition has been approved by both companies' boards of directors.
Mellanox will establish its first R&D center in Europe at IPtronics’ premises in Roskilde, Denmark, and further expand its customer support presence in Europe. It will keep IPtronics’ existing product lines to ensure continuity for customers and partners.
Mellanox said that IPtronics products are embedded in its current solutions, and that the acquisition enhances its ability to deliver complete end-to-end optical interconnect solutions at 100-Gbps and higher speeds to meet the growing demands of applications used in high-performance, Web 2.0, cloud, data center, database, financial services and storage environments.
“The proposed acquisition of IPtronics is highly complementary with our recently proposed acquisition of Kotura. IPtronics’ parallel optical interconnect ICs further solidify our strategy to have a full end-to-end solution for the server and storage interconnect,” said Mellanox president and CEO Eyal Waldman. “The new and emerging Web 2.0 and cloud applications that influence our day-to-day living depend on fast manipulation of data, which is growing exponentially. Mellanox’s interconnect provides the fastest and most scalable solution for moving data between server-to-server and server-to-storage, allowing the continuous development, use and expansion of these applications. We expect that the acquisition of IPtronics’ technology and their development team will better position us to continue to offer faster interconnect solutions at 100-Gbps and beyond, with higher-density and lower power at a lower cost."
Published by Globes [online], Israel business news - www.globes-online.com - on June 4, 2013
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