Mellanox acquired by Nvidia in $6.9 billion agreement
Nvidia and Mellanox today announced that the companies have reached a definitive agreement under which the former will acquire the latter. The move aims to help Nvidia optimise data centre-scale workloads across the entire computing, networking and storage stack to achieve higher performance, greater utilisation and lower operating cost for customers.
Under the agreement, Nvidia will acquire all of the issued and outstanding common shares of Mellanox for $125 per share in cash, representing a total enterprise value of approximately $6.9 billion. It will bring together Nvidia’s computing platform and Mellanox’s interconnects power over 250 of the world’s TOP500 supercomputers, with every major cloud service provider and computer maker included as customers.
The companies have a history of collaboration, as evidenced in their recent contributions in building the world’s two fastest supercomputers, Sierra and Summit, operated by the U.S. Department of Energy. They share a common performance-centric culture that should enable seamless integration.
Jensen Huang, founder and CEO of Nvidia commented: ‘The emergence of AI and data science, as well as billions of simultaneous computer users, is fuelling skyrocketing demand on the world’s data centres. Addressing this demand will require holistic architectures that connect vast numbers of fast computing nodes over intelligent networking fabrics to form a giant data centre-scale compute engine. We’re excited to unite Nvidia’s accelerated computing platform with Mellanox’s world-renowned accelerated networking platform under one roof to create next-generation data centre-scale computing solutions. I am particularly thrilled to work closely with the visionary leaders of Mellanox and their amazing people to invent the computers of tomorrow.’
“We share the same vision for accelerated computing as NVIDIA,” said Eyal Waldman, founder and CEO of Mellanox. “Combining our two companies comes as a natural extension of our longstanding partnership and is a great fit given our common performance-driven cultures. This combination will foster the creation of powerful technology and fantastic opportunities for our people.”
Once the combination is complete, Nvidia will continue to invest in local excellence and talent in Israel. Customer sales and support will not change as a result of this transaction.