Story image

NVIDIA confirms $6.9b acquisition of Mellanox

12 Mar 2019

Today NVIDIA and Mellanox announced the completion of a definitive agreement in which NVIDIA will acquire Mellanox.

This follows months of speculation involving other potential bids from the likes of Microsoft and Intel.

As per the agreement, NVIDIA will acquire all of the issued and outstanding common shares of Mellanox for US$125 per share in cash, in aggregate bringing the approximate purchase sum to a whopping $6.9 billion - NVIDIA’s largest acquisition of all time.

According to NVIDIA, the companies together power more than 250 of the world’s TOP500 supercomputers and have as customers every major cloud service provider and computer maker.

NVIDIA CEO and founder Jensen Huang says the data centre industry is on the verge of significant change following the data and compute intensity of modern workloads in AI, scientific computing, and data analytics growing exponentially, putting enormous performance demands on hyperscale and enterprise data centres.

While computing demand is surging, CPU performance advances are slowing as Moore’s law has ended, which is the niche NVIDIA is looking to to take advantage of with its accelerated computing solutions and Mellanox’s networking solutions.

“The emergence of AI and data science, as well as billions of simultaneous computer users, is fueling skyrocketing demand on the world’s data centres,” says Huang.

“Addressing this demand will require holistic architectures that connect vast numbers of fast computing nodes over intelligent networking fabrics to form a giant datacenter-scale compute engine.

Huang is confident that when complete, the acquisition will be immediately accretive to NVIDIA’s non-GAAP gross margin, non-GAAP earnings per share and free cash flow.

“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 centre-scale computing solutions,” says Huang.

“I am particularly thrilled to work closely with the visionary leaders of Mellanox and their amazing people to invent the computers of tomorrow.”

Huang expects the data centre of the future will be built as giant compute engines with tens of thousands of compute nodes, designed holistically with their interconnects for optimal performance. NVIDIA hopes to use its acquisition of Mellanox to optimise data centre-scale workloads across the entire computing, networking and storage stack to achieve higher performance, greater utilization and lower operating cost for customers.

Fittingly, the companies have a long history of collaboration and joint innovation, reflected in their recent contributions in building the world’s two fastest supercomputers, Sierra and Summit, operated by the U.S. Department of Energy

“We share the same vision for accelerated computing as NVIDIA,” says Mellanox CEO and founder Eyal Waldman.

“Combining our two companies comes as a natural extension of our longstanding partnership and is a great fit given our common performance-driven cultures. This combination will foster the creation of powerful technology and fantastic opportunities for our people.”

Protecting data centres from fire – your options
Chubb's Pierre Thorne discusses the countless potential implications of a data centre outage, and how to avoid them.
Opinion: How SD-WAN changes the game for 5G networks
5G/SD-WAN mobile edge computing and network slicing will enable and drive innovative NFV services, according to Kelly Ahuja, CEO, Versa Networks
TYAN unveils new inference-optimised GPU platforms with NVIDIA T4 accelerators
“TYAN servers with NVIDIA T4 GPUs are designed to excel at all accelerated workloads, including machine learning, deep learning, and virtual desktops.”
AMD delivers data center grunt for Google's new game streaming platform
'By combining our gaming DNA and data center technology leadership with a long-standing commitment to open platforms, AMD provides unique technologies and expertise to enable world-class cloud gaming experiences."
Inspur announces AI edge computing server with NVIDIA GPUs
“The dynamic nature and rapid expansion of AI workloads require an adaptive and optimised set of hardware, software and services for developers to utilise as they build their own solutions."
365 Data Centers secures additional funding for expansion
The company asserts the financing commitments come as it looks to invest in further substantial internal and external growth.
HPE launches 'right mix' hybrid cloud assessment tool
HPE has launched an ‘industry-first assessment software’ to help businesses work out the right mix of hybrid cloud for their needs.
ADLINK and Charles announce multi-access pole-mounted edge AI solution
The new solution is a compact low profile pole or wall mountable unit based on an integration of ADLINK’s latest AI Edge Server MECS-7210 and Charles’ SC102 Micro Edge Enclosure.