Nvidia acquires Mellanox for $6.9 Billion

Nvidia and Mellanox just announced that Nvidia has agreed to a cash purchase of all issued and outstanding common stock at a price of $125/share. According to Golan Hazani, an economist at Ynet, this represents a 17% premium and an increase of 65% since October 2018.

Lilach Baumer of CTech reports that agreement is still subject to regulatory approvals including approval by Mellanox shareholders, and although it has been approved by the boards of directors at both companies, it must also be approved by all shareholders. Prior to the announcement, Intel’s offer of $6 billion was considered the front runner in a bidding war that also included Xilinx (see yesterday’s Calcalist article) and Broadcom (according to Alex Sherman‘s Nov. 7 article at CNBC).

According to Globes, Nvidia’s market cap dropped 38% over the past year to $91.3 billion.