Mellanox Technologies Ltd. (Nasdaq:MLNX) last night announced that its proposed merger with EZchip Semiconductor Ltd. (Nasdaq: EZCH; TASE:EZCH) has received the necessary votes of approval from EZchip shareholders. A majority of 75% of the shareholders at the meeting was required, whether physically present or voting by proxy, and in the end more than 84% supported the deal.
Mellanox said that it expects to complete the acquisition of the Israeli fabless semiconductor provider of high-performance processing solutions during the second half of February 2016. The price of the acquisition is $811 million, or $610 million after deducting EZchip's cash reserves. The EZchip share price for the deal is $25.50.
Mellanox president and CEO Eyal Waldman said, “With the receipt of the necessary shareholder approval, we are pleased to be another step closer to completing the acquisition of EZchip. This acquisition will enhance our scale and profitability by broadening the Mellanox product portfolio, add critical embedded processing intellectual property and know-how to our capabilities and significantly expand our market reach and customer relationships. With the combination of our teams, technologies and products, Mellanox and EZchip together will be in an excellent positon to capitalize on the substantial opportunity for Intelligent Networking, and deliver significant benefits to shareholders, data center customers and employees of the combined company.”
Following completion of the transaction, Mellanox intends to integrate employees from both organizations and retain both companies’ existing product lines, which will ensure continuity for customers and partners of both companies.
Mellanox has also reaffirmed its guidance for the fourth quarter 2015, which it provided with its financial results for the third quarter reported on October 21, 2015.
Published by Globes [online], Israel business news - www.globes-online.com - on January 20, 2016
© Copyright of Globes Publisher Itonut (1983) Ltd. 2016