Israeli Mellanox to buy EZchip for $811 millionOct. 1, 2015
Israeli chip designer Mellanox Technologies has agreed to acquire network communications chip maker EZchip Semiconductor Ltd for $811 million as it expands its product portfolio for high-performance computing.
The offer price of $25.50 per share represents a premium of 16 percent to EZchip's closing price on Tuesday.
Mellanox said the acquisition pursues its strategy to become the leading global supplier of interconnect solutions for software-defined data centres.
Mellanox, with a market value of $1.85 billion, makes InfiniBand products that enable databases, servers and computers to communicate. By buying EZchip, also based in Israel, the company adds Ethernet network processors to the list.
Mellanox Chief Executive Eyal Waldman said the addition of EZchip will increase his company's total addressable market by $2.2 billion in 2017 to $14.5 billion and enable it to more effectively take advantage of the massive data centre opportunity.
For the full news item on Reuters click here.