NVIDIA and Mellanox on Monday announced that the companies had reached a definitive agreement under which NVIDIA will acquire Mellanox. 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.
The acquisition will unite two of the world’s leading companies in high-performance computing (HPC), the companies said in a release. Together, NVIDIA’s computing platform and Mellanox’s interconnects power over 250 of the world’s TOP500 supercomputers and have as customers every major cloud service provider and computer maker.
With Mellanox, NVIDIA will optimize datacenter-scale workloads across the entire computing, networking, and storage stack to achieve higher performance, greater utilization and lower operating cost for customers, according to the release.
“The emergence of AI and data science, as well as billions of simultaneous computer users, is fueling skyrocketing demand on the world’s data centers,” said Jensen Huang, founder and CEO of NVIDIA. “Addressing this demand will require holistic architectures that connect vast numbers of fast computing nodes over intelligent networking fabrics to form a giant datacenter-scale compute engine.”
NVIDIA intends to continue its investments in Israel, one of the world’s most important technology centers, the release said.