NVIDIA (NASDAQ: NVDA) said it has received approval from China’s State Administration for Market Regulation of its planned purchase of Mellanox Technologies (NASDAQ: MLNX). Following similar approval from the European Commission and Mexico and the expiration of the waiting period under U.S. antitrust laws, the company says it has received all necessary regulatory approvals for consummating the transaction, which it plans to do on or about April 27, 2020.
NVIDIA announced an agreement to purchase Mellanox March 11, 209 for $125 per share in cash, or $6.9 billion (see "NVIDIA to buy Mellanox"). The deal will pair NVIDIA’s computing expertise with Mellanox’s high-performance interconnect technology. The company expects the new assets will be immediately accretive to non-GAAP gross margin, non-GAAP EPS, and free cash flow.
Founded in 1999 and headquartered in Sunnyvale, CA, and Yokneam, Israel, Mellanox Technologies specializes in interconnect technology for Ethernet and InfiniBand applications. Its offerings include network and multicore processors, network adapters, switches, cables, software, and silicon. These include active optical cables and optical transceivers. The fact that the company was the subject of an acquisition has not dampened its own M&A pursuits; the company announced March 3, 2020, that it had reached an agreement to buy network intelligence (NI) and security technology provider Titan IC. The company bought silicon photonics pioneer Kotura in 2013, but stopped research into 1550-nm silicon photonics in January 2018 (see “Mellanox to buy silicon photonics developer Kotura” and “Mellanox ends 1550-nm silicon photonics work”).
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