Intel reportedly offered $6 Billion to Acquire Mellanox
30 January, 2019
Based in Yokneam, Israel, Mellanox provides fast connectivity solutions for data centers, cloud infrastructures and supercomputers
The chipmaker Intel Corp may plan another big deal in Israel, following the $15.3 billion acquisition of Mobileye, completed in August 2017. Israeli media Themarker and Calcalist quoted today (Wednesday) unidentified source who claimed that Intel has bid $6 billion in cash and stock to buy Mellanox Technologies. This price tag represent a 35% premium to the company’s value on Nasdaq, of approximately $4.4 billion.
In November 2018, CNBC news reported that Xilinx is planning to bid for Mellanox at $100 per, giving it a total price of approximately $5.5 billion. CNBC quoted unidentified sources, claiming that Xilinx had hired Barclays to advise in promoting the deal. This followed earlier CNBC report published in October 25, saying that Mellanox appointed an investment bank to explore its sale.
Based in Yokneam, Israel, Mellanox provides fast connectivity solutions for data centers, cloud infrastructures and supercomputers. It is considered the world’s largest provider of InfiniBand solutions for supercomputers. Its strategy is based on complete solutions based on its own core semiconductor chips.
The company’s InfiniBand and Ethernet solutions connect 53% of overall TOP500 platforms or 265 systems. Its InfiniBand accelerates the top three supercomputers on the TOP500 list: the fastest High-Performance Computing (HPC) and Artificial Intelligence (AI) supercomputer in the world deployed at the Oak Ridge National Laboratory, the second fastest supercomputer in the US deployed at the Lawrence Livermore National Laboratory, and the fastest supercomputer in China(ranked third).
In October 2018 Mellanox reported a five consecutive quarters of record results, and a $798.7 million sales during the first three quarters of 2018, compared to$626.3 million in 2017. “Our strong results reflect the differentiated and superior product technologies that Mellanox has to offer for data center infrastructure,” said Eyal Waldman (photo above), President and CEO of Mellanox Technologies.