Nvidia sees off Intel to acquire Mellanox for $6.9 billion
NVIDIA and Mellanox have this week announced that the companies have reached a definitive agreement under which NVIDIA will acquire Mellanox. Pursuant to 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. Once complete, the combination is expected to be immediately accretive to NVIDIA’s non-GAAP gross margin, non-GAAP earnings per share and free cash flow.
The acquisition will unite two of the world’s leading companies in high performance computing (HPC). 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.
The data and compute intensity of modern workloads in AI, scientific computing and data analytics is growing exponentially and has put enormous performance demands on hyperscale and enterprise datacenters. While computing demand is surging, CPU performance advances are slowing as Moore’s law has ended. This has led to the adoption of accelerated computing with NVIDIA GPUs and Mellanox’s intelligent networking solutions.
Datacenters in the future will be architected as giant compute engines with tens of thousands of compute nodes, designed holistically with their interconnects for optimal performance.
An early innovator in high-performance interconnect technology, Mellanox pioneered the InfiniBand interconnect technology, which along with its high-speed Ethernet products is now used in over half of the world’s fastest supercomputers and in many leading hyperscale datacenters.
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.
“The emergence of AI and data science, as well as billions of simultaneous computer users, is fueling skyrocketing demand on the world’s datacenters,” 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.
“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 datacenter-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.”
The companies have a long history of collaboration and joint innovation, reflected in their recent contributions in building the world’s two fastest supercomputers, Sierra and Summit, operated by the U.S. Department of Energy. Many of the world’s top cloud service providers also use both NVIDIA GPUs and Mellanox interconnects. NVIDIA and Mellanox share a common performance-centric culture that will enable seamless integration.
Once the combination is complete, NVIDIA intends to continue investing in local excellence and talent in Israel, one of the world’s most important technology centers. Customer sales and support will not change as a result of this transaction.
Additional Transaction Details
Post close, the transaction is expected to be immediately accretive to NVIDIA’s non-GAAP gross margin, non-GAAP earnings per share and free cash flow. NVIDIA intends to fund the acquisition through cash on its balance sheet. In addition, there is no change to its previously announced capital return program for the rest of fiscal 2020. The transaction has been approved by both companies’ boards of directors and is expected to close by the end of calendar year 2019, subject to regulatory approvals as well as other customary closing conditions, including the approval by Mellanox shareholders of the merger agreement.#
source nvidia
Industry: Data Centre & Artificial Intelligence News
Latest Jobs
-
- Cyber Security Senior Consultant | London | FS
- London
- Apply today
-
London | FS | Cyber Security Senior Consultant We are looking for experienced cyber security consultant with experience helping clients within the financial services industry. The role will include, but not be limited to; Conduct cyber security assessments, develop strategies, and provide advice to clients. Oversee and deliver security improvements projects. Help clients understand and comply with financial sector regulations. Provide insights and thought leadership on emerging trends in cyber security. Current experience within a client facing, cyber consulting role within Financial Services is essential. All the usual badges are nice to have, although not essential- for example; ISO27001, CISSP, CISM etc etc Sponsorship is not available for this role. Applicants must be UK based and able to travel on occasion to client site and the office in London To find out more reach out to me on 07884666351 or chris.holt@dclsearch.com
-
- Senior Penetration Tester - UK - Ability to achieve security clearance.
- United Kingdom
- To attract the right person
-
Senior Penetration tester, who has the ability to achieve security clearance. (Visa sponsorships NOT available - sorry) UK based - remote first - occasional travel. Red teaming experience desirable. The successful person needs to have a history of engaging directly with customers (consultancy experience) technical delivery of penetration tests AND report writing. Limited travel - company operates a remote first approach. Must be living in the UK. Not one of the usual names in the pen testing industry. Looking for someone highly technical but looking to grow and develop their skills. Apply here or Reach out to me on chris.holt@dclsearch.com or 07884666351 All details kept discreet
-
- Cloud Architect- German Speaker
- Hungary
- Upto €48000 per year + bonus + benefits
-
As a Senior Pre-Sales Solutions Architect, you will play a pivotal role in driving our sales success by translating complex technical solutions into compelling proposals that resonate with our clients. You will collaborate closely with our sales teams to understand customer needs, design tailored solutions, and negotiate successful deals. Responsibilities: Solution Design: Develop comprehensive technical solutions that align with customer business objectives and industry best practices. Proposal Development: Create compelling proposals, including requirements gathering questionnaires, presentation materials, and Statements of Work (SOWs). Customer Engagement: Build strong relationships with clients, understanding their technical, business, and commercial requirements. Collaboration: Work closely with sales teams, delivery teams, and third-party partners to ensure successful project execution. Pricing Strategy: Define and deliver pricing strategies that align with customer needs and company objectives. Requirements: Experience in technical pre-sales or sales support roles. Proven track record in designing and delivering successful customer solutions. Strong technical foundation in areas such as VMware, Azure, AWS, cloud computing, and data center technologies. Excellent understanding of sales principles, account management, and negotiation techniques. Ability to explain complex technical concepts clearly and concisely. Experience working in international teams and supporting clients across multiple regions. Fluency in German and English is essential. Benefits: Competitive salary and benefits package Opportunity to work on challenging and rewarding projects Collaborative and supportive work environment Potential for career growth and advancement Please note that this role is focused on supporting German clients, but will also involve global client support as needed.