- Nvidia has agreed to buy Mellanox Technologies for $6.9 billion.
- The deal, expected to close this year, will pay Mellanox shareholders $125 a share — a 14.3% premium to Friday’s closing price.
- Nvidia reportedly beat out Intel in the race for Mellanox.
- Watch Nvidia and Mellanox Technologies trade live.
The offer, said to have beaten out the rival Intel, is the largest in Nvidia’s history and will pay Mellanox shareholders $125 a share — a 14.3% premium to Friday’s closing price.
“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-center-scale computing solutions,” Nvidia’s founder and CEO, Jensen Huang, said in a press release.
Monday’s announcement will allow Nvidia to reduce its reliance on gaming. In January, the chipmaker announced that declining macroeconomic conditions, particularly in China, affected demand for its gaming graphics processing units. The chipmaker is also still dealing with the fallout from the crypto market’s bust in 2018.
Nvidia expects the deal to be immediately accretive to its earnings once it closes, which is expected to occur this year.
Goldman Sachs was the financial adviser to Nvidia, while Credit Suisse and JPMorgan were the financial advisers for Mellanox.
Nvidia was little changed Monday morning, while Mellanox was trading up 8.9% at $119.08 a share.