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.

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:

  • Trump to seek another US$8.6b for border wall

    Trump to seek another US$8.6b for border wall

    The administration is counting on robust economic growth, including from the 2017 Republican tax cuts, to push down the red ink. The budget cuts non-defense spending even below the budget caps Congress set for this fiscal year by an average of 5 percent.
    Trudeau: Mistakes made in SNC-Lavalin affair, no rules broken

    Trudeau: Mistakes made in SNC-Lavalin affair, no rules broken

    Trudeau responded to the Globe report by telling the news media that his government did not "direct" her on the matter. That's the difference between Justin Trudeau and me". "As we now learn ... that was not the case", Trudeau said.
    Mark Jackson Ripped Rajon Rondo During Lakers Loss

    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).
  • Disney's streaming service will have the 'entire' Disney library, CEO says

    Disney's streaming service will have the 'entire' Disney library, CEO says

    Iger said the vault would disappear when the streaming service was released later this year (though there is still no set date). As of now, that timeline still looks to be accurate, as Disney CEO Bob Iger confirmed that things would be finished "soon".
    22 'Terrorist Training Camps Run in Pakistan', No Action Taken - Indian Official

    22 'Terrorist Training Camps Run in Pakistan', No Action Taken - Indian Official

    The Balakot airstrike conducted by India was a counter-terrorism operation, which was well within the worldwide laws. But after the Pulwama attack, India has set "a new normal".
    Arnold Palmer Day 1 recap

    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.
  • Captain Marvel: 20 Easter Eggs And References Explained

    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.
    Man charged over Grealish assault

    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.
    EPL scores, results | Arsenal beat Manchester United, Liverpool beat Burnley

    EPL scores, results | Arsenal beat Manchester United, Liverpool beat Burnley

    The visitors took a surprise lead in the sixth minute, with Ashley Westwood scoring direct from a corner. Andrews was barely 10 minutes old when a fan came onto the field of play and approached Grealish.
  • 'Majority of Madrid players have delivered, some have not' - Solari

    'Majority of Madrid players have delivered, some have not' - Solari

    Solari walked into Wednesday's Champions League game against Ajax with a knife over his head as rumours of a successor for the job have already been doing the rounds.
    Zuckerberg's shift on privacy looks like a cop-out

    Zuckerberg's shift on privacy looks like a cop-out

    Zuckerberg acknowledges Facebook doesn't have a good reputation when it comes to privacy, but he says they can adapt. Facebook , Zuckerberg wrote , has been " obsessed " with creating an " intimate environment" for WhatsApp users.
    Zion misses 4th straight game with knee sprain

    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.


Most liked

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 .

Real Madrid re-hires Zinedine Zidane as manager amid tumultuous season
Real crashed out of the Champions League in the last 16 with a 4-1 loss to Ajax last week, their fourth straight home defeat. During his first spell with the club, over the course of less than three seasons, he managed to win nine trophies.

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.

Akash Ambani-Shloka Mehta wedding: Tony Blair, Aamir Khan are among guests
The wedding ceremonies will kickstart anytime soon with baaraat assembling at Trident Hotel, BKC at 3.30 pm. Akash Ambani proposed to Shloka Mehta in March 2018 after having dated since high school.

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.

Britain removes citizenship from two more IS brides: report READ MORE
Kirsty McNeill, a director at Save the Children UK, urged Britain to "take responsibility for their citizens" in Syria. A British government spokesman said: "The death of any child is tragic and deeply distressing for the family".

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.

Akash Ambani-Shloka Mehta wedding ceremony
Yes! The Mangal Baaraat have started and guests are expected at arrive by 6.30pm. Akash's mother and Mukesh's wife Nita Ambani also danced at the baraat .

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.

Met Éireann issue snow and ice warning for 9 counties
It advised people to get their shopping done on Saturday , if possible, to cut out a need to travel while the alert is in place. After weeks of bitterly cold temperatures and mountains of snow, it looks like the GTA is in for a bit of a warmup this weekend.

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 .

Trump Super Bowl Party Attended By Founder Of Orchids Of Asia Spa
Goldberger previously defended Palm Beach multimillionaire Jeffrey Epstein against charges of trafficking underage girls for sex. She was not charged in the case, and none of the parlors that were part of the bust are registered to her or her family.

R. Kelly: Gayle King Says Kelly Tried To Control Girlfriends' CBS Interview
And, she didn't hold back. "I gave you 30 years of my f-ing career!" "Why would I? How stupid would it be for R. Kelly has suggested that the parents of both women handed them over to him - a charge the families have denied.