The acquisition is a further step in Mellanox’s strategy to become the leading broad-line supplier of intelligent interconnect solutions for data centers.
Israeli end-to-end connectivity solution provider Mellanox Technologies Ltd. (Nasdaq:MLNX) has completed the acquisition of EZchip Semiconductor Ltd. (Nasdaq: EZCH; TASE:EZCH) for $811 million ($606 million net of cash). Both companies are based in Yokneam near Haifa. EZchip provides high-performance processing solutions for carrier and data center networks.
As of today, each outstanding share of EZchip ordinary shares shall be deemed to have been transferred to Mellanox, entitling the holder to receive $25.50 in cash without interest and less any applicable withholding taxes. Following the merger, EZchip shares will be delisted from both Nasdaq and the TASE.
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The EZchip acquisition is a further step in Mellanox’s strategy to become the leading broad-line supplier of intelligent interconnect solutions for data centers. The combined company will deliver diverse and robust solutions, enabling customers to meet growing demands of data-intensive applications used in high-performance computing, Web 2.0, cloud, network security, data center, enterprise, telecom, database, financial services and storage environments.
J.P. Morgan Securities LLC acted as exclusive financial adviser in the deal, and provided a financing commitment to Mellanox, and Herzog Fox & Neeman and Latham & Watkins LLP acted as Mellanox’s legal counsel.
Mellanox also updated first quarter 2016 guidance, which includes 5-weeks of EZchip contribution. The company sees quarterly revenue of $190 million to $195 million.