Nvidia and Mellanox 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 USD 125 per share in cash, representing a total enterprise value of approximately USD 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 TOP 500 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.
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.
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.