Nvidia believed mulling Mellanox bid

CEO Jensen Huang attends an event during the annual Computex computer exhibition in Taipei Taiwan

US 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. Intel is believed to have already made a bid for the Israeli company, apparently offering US$6 billion for the network specialist.

The deal will help Nvidia to better compete in the data centre market, which now accounts for around a third of its sales.

Nvidia bought Mellanox to help stitch those servers together into one giant computer, Nvidia Chief Executive Jensen Huang told Reuters in an interview.

The acquisition is a win for the New York-based activist investor Starboard Value LP, which owns a 5.8 percent stake and had reached a deal with Mellanox a year ago over the composition of its board. As Nvidia's press release puts it, acquiring Mellanox will allow Nvidia to optimise datacentre-scale workloads and achieve higher performance at a lower operating cost.

Shares of Mellanox rose 8.8 percent and Nvidia shares fell 1.3 percent in premarket trading.

Founded in 1999, Mellanox Technology is one of the world's leading producers of high-speed networking components - including silicon - using Ethernet and InfiniBand standards.

Zion misses 4th straight game with knee sprain
Without having to face Williamson, North Carolina would be a long way toward its first regular-season sweep of Duke since 2009. RJ Barrett is averaging 23.3 points and 7.4 rebounds while Zion Williamson is averaging 21.6 points and 2.2 assists.

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

Nvidia and Intel, as is usual for the companies, have refused to speculate on the sources' claims, but an announcement from the successful bidder is expected early this week. The combined company will power more than half of the world's 500 largest computers, the company said.

Seyrafi estimates the deal will increase Nvidia's annual revenue by about 11%. Mellanox will pay a $350 million termination fee to Nvidia if it accepts a rival offer.

The deal is expected to close by the end of 2019.

Nvidia, at first glance, wouldn't be the kind of suitor you'd pick for a company like Mellanox.

Related News:



Most liked

Freeda Forman, Daughter Of Boxing Champ George Foreman, Dies In Texas
George Foreman ended up paying his daughter to retire after her first loss because he didn't want her to be in the ring anymore. She left the sport after her first defeat to focus on raising a family. "Okay, one more year - aww one more decade".

Captain Marvel: 20 Easter Eggs And References Explained
In North America, Captain Marvel finished its opening weekend as the seventh-largest opening weekend in the MCU. Captain Marvel is also the first Marvel superhero movie that's headlined exclusively by a female superhero.

Meghan Markle glows in green from Erdem as she joins Prince Harry
At the time , multiple reports suggested Meghan's "difficult" behaviour had caused a strain within the royal household. In November, Meghan's personal assistant Melissa Touabti quit after six months at the job.

Wide receiver DeSean Jackson returning to the Philadelphia Eagles
The Philadelphia Eagles and Jackson have mutual interest in a reunion. DeSean Jackson is returning to Philadelphia, NFL Network reports .

Man charged over Grealish assault
Birmingham City issued a full statement and apology on their website , confirming the offending supporter will be banned from St. The intruder was quickly restrained by stewards as several other Villa players rushed in to confront him.

Dozens hurt as New York-bound flight suffers severe turbulence
The US National Weather Service had issued advisories on Saturday warning pilots of expected turbulence. Most injuries were minor, with passengers suffering bumps and bruises, but one person had a broken leg.

Jong-nam murder trial: Murder charge against Siti Aisyah withdrawn
Kim Jong-nam, the eldest son of late dictator Kim Jong-il, had challenged his half-brother's succession to the top post. "I did not expect it", a visibly elated Aisyah told reporters as she was ushered into a vehicle outside the court.

Democrats Keep Trying to Cover Up Their Anti-Semitism
The same can't be said for their colleagues across the aisle, 23 of whom voted against the measure condemning white supremacy. It is unclear if the Cruz resolution, unlike the House version, will call out Omar or any members of Congress explicitly.

Chelsea lining up Santo as replacement for Sarri
When I chose to play 4-2-3-1 Jorginho was not suitable. "We missed a very great opportunity today but we have nine opportunities". But Wolves turned the game around and caught us on two deadly counter attacks, leaving us beaten and Maurizio Sarri in trouble.

Now 'impossible' to give Turkey F-35, United States warns
Turkey has attempted to balance its ties with the US and Russian Federation but has shifted toward the latter in recent years. Signed into law on August 2, 2017, CAATSA, among other things, imposed new sanctions on Iran, Russia and North Korea.

Arnold Palmer Day 1 recap
Former Bay Hill champions Jason Day and Marc Leishman, as well as Aaron Baddeley, are the only Australians in the field. Rafa Cabrera Bello plays a shot on the ninth hole during the first round.

No 2020 White House Run for Senator Sherrod Brown
Brown had easily won re-election to the Senate in November in OH , even though Republicans captured every other statewide office . Believe me, we will fight. "The best place for me to make that fight is in the United States Senate", Brown said in a statement.

Mark Jackson Ripped Rajon Rondo During Lakers Loss
After the Los Angeles Lakers lost to the Denver Nuggets on Wednesday night, their record dropped to 30-35. James now trails only Kareem Abdul-Jabbar (38,387 points), Karl Malone (36,928) and Kobe Bryant (33,643).

United States trade deficit hits 10-year high despite Trump's tariffs
President Donald Trump has made cutting the gap between the two countries a top priority of his administration. Both nations are in discussions and there is speculation they could reach an agreement by the end of March .

ISIS bride Shamima Begum's baby has reportedly died
Syrian Democratic Forces have denied reports that the baby son of Islamic State (IS) bride Shamima Begum has died. They say the teenager should face justice if she is found to have broken the law by travelling to Syria.