US graphics processing giant Nvidia Corp. (Nasdaq: NVDA) today announced the completion of its acquisition of Israeli big data connectivity equipment developer Mellanox Technologies Ltd. (Nasdaq:MLNX) for $7 billion.
The acquisition was first announced on March 11, 2019 and should have been completed by December 31 but was delayed because the Chinese regulator only approved the deal earlier this month.
Nvidia said that the deal combines its own computing expertise with Mellanox’s high-performance networking technology, and the move will enable customers to achieve higher performance, greater utilization of computing resources and lower operating costs.
Nvidia has said it plans keeping Mellanox in Israel and investing in its expansion as well as in other Israeli companies. Mellanox founder and CEO Eyal Waldman will continue to lead Mellanox and when asked last week about his future plans he told "Globes," "I'll continue for a certain period of time, perhaps shorter or perhaps longer. Nvidia CEO Jensen Huang and myself are working on this."
Huang said, "The expanding use of AI and data science is reshaping computing and data center architectures. 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."
Waldman 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."
Published by Globes, Israel business news - www.globes-online.com - on April 27, 2020
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