NVIDIA Completes $7 Billion Acquisition of Mellanox to Power Next-Generation Data Centers

Santa Clara, California, USA — April 27, 2020 — NVIDIAToday, it was announced that the acquisition of Mellanox Technologies, Ltd. has been completed for a purchase price of $7 billion.

The acquisition was first announced on March 11, 2019, when two global leaders in high-performance and data-center computing joined forces to combine NVIDIA’s leading computing expertise with Mellanox’s high-performance networking technology, enabling customers to achieve higher performance, greater compute resource utilization, and lower operating costs.

“The widespread adoption of artificial intelligence and data science is reshaping computing and data center architectures,” said Jensen Huang, founder and CEO of NVIDIA. “By integrating Mellanox’s technology, the new NVIDIA will possess end-to-end technologies spanning from AI computing to networking, as well as full-stack products ranging from processors to software, giving it sufficient scale to advance next-generation data center technologies. Our combined expertise, supported by a rich partner ecosystem, will address the challenges posed by the surge in global consumer internet service demand, as well as the application of AI and accelerated data science across cloud computing, edge computing, and robotics.”

Eyal Waldman, Founder and CEO of Mellanox, stated, “This is a powerful alliance of culture, technology, and vision. Our employees are enthusiastic about the many opportunities ahead. As Mellanox embarks on an exciting new chapter, we will continue to deliver cutting-edge solutions and innovative products to our customers and partners. We look forward to introducing NVIDIA’s products and solutions to our market, while bringing Mellanox’s products and solutions to NVIDIA’s market. In sum, our technologies will provide leading solutions to meet the needs of computing and storage platforms.”

The acquisition is expected to immediately accretive to NVIDIA’s non-GAAP gross margin, non-GAAP earnings per share, and free cash flow, including the incremental interest expense associated with NVIDIA’s recently issued $5 billion in bonds.

Mellanox shareholders, please refer to the Frequently Asked Questions on NVIDIA’s investor relations website for more information regarding the exchange and important tax considerations.

NVIDIA(Nasdaq ticker symbol:NVDA) The GPU, invented in 1999, spurred the growth of the PC gaming market, redefined modern computer graphics cards, and revolutionized parallel computing. More recently, GPU-based deep learning has ignited a new era of computing—modern artificial intelligence—by serving as the brain for computers, robots, and even autonomous vehicles that can perceive and understand the world.