Mellanox shareholders approve Nvidia takeover

Eyal Waldman and Jensen Huang Photo: Kadia Levy

99.5% of the shareholder votes were in favor of Nvidia's $7.36 billion cash offer.

On Thursday, the shareholders of Mellanox approved the $7.36 billion cash takeover offer from Nvidia . 99.5% of the votes went in favor of the offer, which amounts to $125 per Mellanox share. Mellanox's share price closed at $111.49 in New York on Friday.

In addition, the shareholders passed all the resolutions relating to Mellanox co-founder and CEO Eyal Waldman's monthly compensation, which will rise from $610,000 to $650,000, applicable from April this year, and to his "golden parachute".

Senior Mellanox managers who leave as a consequence of the Nvidia acquisition will receive a total of $15.6 million, while Waldman will receive $31.66 million - $3.4 million cash and $28.1 million in stock-based compensation, which includes the value of the vested shares he holds.

Mellanox develops and sells communications equipment for rapid data transfer. Waldman, who founded the company in 1999, holds 3.3% of the company, a stake worth $228 million under the takeover terms.

The largest shareholders in Mellanox are Oracle, which holds 4% of the company, and Clal Insurance, which holds 3.5%. The Starboard investment fund, which was the largest shareholder in Mellanox and led a proxy campaign last year against the company's board, sold its shares at a decent profit shortly after Nvidia's offer became public.

Published by Globes, Israel business news - - on June 23, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

Eyal Waldman and Jensen Huang Photo: Kadia Levy
Eyal Waldman and Jensen Huang Photo: Kadia Levy
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