NVIDIA and Mellanox today announced an ultimate agreement of acquisition. Under the agreement, NVIDIA will acquire all of Mellanox’s outstanding common stock at a cash price of $125 per share for a transaction value of approximately $6.9 billion.
After completing the transaction, it is expected that NVIDIA’s non-GAAP gross margin, earnings per share and free cash flow will be instantly increased. The process will unite two leading high performance computing (HPC) companies. It will also assist all main cloud service providers and computer makers.
NVIDIA’s who is a computing platform and Mellanox’s connected technology will offer more than 250 interconnect capabilities in the world’s top 500 supercomputers.
Mellanox’s interconnect products are generally used in high-end servers for Ethernet and other networking technologies. NVIDIA and Mellanox hardware has been used in the highly regarded Sierra and Summit supercomputers.
“Artificial intelligence, data science and billions of simultaneous computer users are rapidly accelerating the demand for global data centers. In order to meet such needs, it will be necessary to A large number of fast computing nodes are connected to form a huge data center-scale computing engine. We are excited to combine NVIDIA’s accelerated computing platform with Mellanox’s world-renowned accelerated networking platform to create a new generation of data center scale computing solutions program.” NVIDIA founder and CEO Huang Renxun said in a statement.
As data and computing power in artificial intelligence, scientific computing, and data analysis are growing at multiples it is also creating strong performance demands for hyperscale and enterprise data centers.
To fulfill demand data centers in future will be built as giant computing engines with tens of thousands of compute nodes. Also, the overall layout can be interconnected to achieve optimal performance.
In addition, with the purchase, the company will be able to optimize data center-scale computing load, including all computing, networking and storage stacks, allowing customers to achieve higher performance, higher utilization and lower operating costs.
It is expected that their acquisition of Mellanox will be completed by the end of 2019.