Earlier media speculations about Nvidia acquiring Mellanox have turned out to be true, with the deal now officially confirmed.
Reports have said that Nvidia will spend a total of $6.9 billion for the deal, buying both issued and outstanding common shares of the company for $125 per share.
The entire deal will be done with cash, it was said, with both companies’ board of directors have approved the deal.
The acquisition is expected to be closed by the end of the year.
Earlier, it was reported that Intel was also interested in the acquisition. Intel aside, Nvidia has also allegedly beaten Xilinx to the punch, as well.
Mellanox was founded in 1999, and its core business includes the making of optical transceivers and end-to-end solutions that are used in data centre servers and storage systems. Its latest offerings are designed to work for HPC, Hyperscale and AI applications.
Last year, it reported a $1.09bn revenue, meaning a 26 per cent growth year-over-year.
"The emergence of AI and data science, as well as billions of simultaneous computer users, is fuelling skyrocketing demand on the world's data centres," Jensen Huang, founder, and CEO of Nvidia, said at the announcement.
"Addressing this demand will require holistic architectures that connect vast numbers of fast computing nodes over intelligent networking fabrics to form a giant data centre-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 data centre-scale computing solutions."
Image source: Shutterstock/MaximP