NVIDIA has completed its acquisition of Mellanox Technologies for a transaction value of $7 billion. The acquisition, initially announced on March 11, 2019, unites two leading companies in high performance and data center computing.
“The expanding use of AI and data science is reshaping computing and data center architectures,” said Jensen Huang, founder and CEO of NVIDIA. “With Mellanox, the new NVIDIA has end-to-end technologies from AI computing to networking, full-stack offerings from processors to software, and significant scale to advance next-generation data centers. Our combined expertise, supported by a rich ecosystem of partners, will meet the challenge of surging global demand for consumer internet services, and the application of AI and accelerated data science from cloud to edge to robotics.”
The acquisition is expected to be immediately accretive to NVIDIA’s non-GAAP gross margin, non-GAAP EPS and free cash flow, inclusive of incremental interest expense related to NVIDIA’s recent issuance of $5 billion of notes.
“This is a powerful, complementary combination of cultures, technology and ambitions. Our people are enormously enthusiastic about the many opportunities ahead,” said Eyal Waldman, founder and CEO of Mellanox. “As Mellanox steps into the next exciting phase of its journey, we will continue to offer cutting-edge solutions and innovative products to our customers and partners. We look forward to bringing NVIDIA products and solutions into our markets, and to bringing Mellanox products and solutions into NVIDIA’s markets. Together, our technologies will provide leading solutions into compute and storage platforms wherever they are required.”