Anonymous ID: bb5746 March 11, 2019, 12:22 p.m. No.5626260   ๐Ÿ—„๏ธ.is ๐Ÿ”—kun   >>6455 >>6735

Nvidia outbids Intel to buy Israel's Mellanox in data center push

 

(Reuters) - U.S. chipmaker Nvidia Corp has agreed to buy Israeli chip designer Mellanox Technologies Ltd for $6.8 billion, beating rival Intel Corp in a deal that would help the firm boost its data center and supercomputer business.

 

The all-cash offer of $125 per share represents a premium of 14 percent to Mellanox's closing price on Friday. Mellanox shares rose 8.4 percent to $118.56 and Nvidia shares gained 2.8 percent in early Nasdaq trading on Monday.

 

The agreement, which the companies described as "definitive", follows a competitive bidding process which according to sources familiar with the matter, included rival chipmakers such as Intel.

 

Xilinx Inc was also part of the process, sources said. Mellanox will pay a $350 million termination fee to Nvidia if it accepts a rival offer.

 

Reuters reported about the deal on Sunday.

 

Intel declined to comment on whether the company had bid for Mellanox, while Xilinx did not immediately respond to a request for comment.

 

"The emergence of AI (artificial intelligence) and data science, as well as billions of simultaneous computer users, is fuelling sky-rocketing demand on the worldโ€™s data centres," said Nvidia Chief Executive Jensen Hung.

 

Bernstein analyst Stacy Rasgon said Nvidia has been pushing more into networking and connectivity with its own tailored solutions and Mellanox would bring further expertise.

 

https://www.marketscreener.com/INTEL-CORPORATION-4829/news/Nvidia-outbids-Intel-to-buy-Israel-s-Mellanox-in-data-center-push-28143763/?countview=0

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