NVIDIA Closes $7B Mellanox Deal
April 27, 2020
completed its acquisition of Mellanox Technologies for a transaction
value of $7 billion.
The acquisition, initially announced on March 11, 2019, unites two of
the world’s leading companies in high performance and data center
computing. Combining NVIDIA’s leading computing expertise with
Mellanox’s high-performance networking technology, the move will enable
customers to achieve higher performance, greater utilization of
computing resources and lower operating costs.
“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.”
Waldman, founder and CEO of Mellanox, said: “This is a powerful,
complementary combination of cultures, technology and ambitions. Our
people are enormously enthusiastic about the many opportunities ahead.
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
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