US tech giant Nvidia Corp. is nearing an agreement to buy Israeli big data connectivity company Mellanox Technologies Ltd. (Nasdaq:MLNX) reports "Bloomberg" according to people familiar with the matter. A person familiar with the matter told "Reuters" that the deal would be for more than $7 billion in cash.
"Bloomberg" added that the sale could even be completed today, the people said, asking not to be identified because the deliberations are private. Yokneam-based Mellanox has a market cap of $5.9 billion after its share price has risen 66% since October and 18% this year. With Intel, Microsoft, and Xilinx all reportedly interested in the Israeli company, Nvidia can be expected to pay a handsome premium over the market price. "Bloomberg" said that Nvidia is the leading bidder ahead of rivals including Intel Corp., though no final decision has been made and the outcome could still change, the people said.
When contacted by "Bloomberg," representatives for Nvidia, Mellanox and Intel declined to comment.
Mellanox, managed by founder Eyal Waldman, produces interconnect solutions for big data using InfiniBand and Ethernet technologies.
Nvidia has a market cap of $91.3 billion, following a 38% decline in its share price over the past year. The company develops and sells graphics processors that include artificial intelligence components. Among its markets are the gaming industry, autonomous vehicles, and data centers.
"Reuters" says that Nvidia’s biggest-ever acquisition would boost its business of making chips for data centers, allowing it to reduce its reliance on the video game industry, for which it is best known as a major technology vendor.
A few months ago, "Globes" first reported the opening of Nvidia's artificial intelligence research center in Israel, under Prof. Gal Chechik.
Published by Globes, Israel business news - en.globes.co.il - on March 10, 2019
© Copyright of Globes Publisher Itonut (1983) Ltd. 2019