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Primeur weekly 2015-10-05

Special

Developing hardware for the exascale era in the DEEP and DEEP-ER projects ...

Exascale supercomputing

Is 3D-stacked memory the solution for HPC? ...

Quantum computing

Scientists produce status check on quantum teleportation ...

Focus on Europe

12th PRACE Call for Proposals for Project Access now open ...

ESiWACE and ESCAPE: integrating leading edge climate and weather simulations into HPC ...

Human Brain Project (HBP) pre-commercial procurement has entered its final phase ...

Imperial announces winner of competition to name supercomputer ...

NLeSC Integrator Barend Mons appointed Chair of European Commission's high level expert group ...

Middleware

IBM expands Watson platform for next generation of builders; extends industry's largest portfolio of cognitive APIs ...

Hardware

Large hyper data centres making use of Climaveneta high efficiency solutions ...

Dialog Semiconductor to acquire Atmel for $4.6 billion ...

IBM research breakthrough paves way for post-silicon future with carbon nanotube electronics ...

Mellanox Technologies announces definitive agreement to acquire EZchip ...

Kyoto University's Yukawa Institute for Theoretical Physics awards supercomputer contract to Cray ...

Applications

SDSC extends its "network" with Graph Analytics Training ...

NVIDIA designates University of Wyoming as GPU research centre ...

Spectacular new era in satellite meteorology unveiled ...

University of Maryland awarded $1 million from NIST for next-generation cryptography ...

NWSC Visitor Center designed to educate and inspire public about science ...

New supercomputer software takes us one giant step closer to simulating the human brain ...

Titan helps unpuzzle decades-old plutonium perplexities ...

Alexander Szalay named recipient of 2015 IEEE Computer Society Sidney Fernbach Award ...

The Cloud

SDSC upgrades Cloud computing and storage services ...

Cloud28+ community launches Unified European Cloud Catalogue ...

Mellanox Technologies announces definitive agreement to acquire EZchip

30 Sep 2015 Sunnyvale, Yokneam - Mellanox Technologies Ltd., a supplier of end-to-end interconnect solutions for servers and storage systems, and EZchip, an expert in high-performance processing solutions for carrier and data centre networks, have entered into a definitive merger agreement under which Mellanox shall acquire 100 percent of EZchip's outstanding ordinary shares for a cash purchase price of $25.5 per share implying a transaction value of approximately $811 million (approximately $620 million net of cash). The terms of the transaction have been unanimously approved by both the Mellanox and EZchip Boards of Directors.

The EZchip acquisition is a step in Mellanox's strategy to become the leading broad-line supplier of intelligent interconnect solutions for the software-defined data centres. The addition of EZchip's products and expertise in security, deep packet inspection, video, and storage processing enhances Mellanox's leadership position, and ability to deliver complete end-to-end, intelligent 10, 25, 40, 50, and 100Gb/s interconnect and processing solutions for advanced data center and edge platforms. The combined company will have diverse and robust solutions to enable customers to meet the growing demands of data-intensive applications used in high-performance computing, Web 2.0, cloud, secure data centre, enterprise, telecom, database, financial services and storage environments.

"The synergies between EZchip and Mellanox create attractive opportunities. We expect our combined technologies, and product portfolios to deliver leading end-to-end intelligent interconnect and processing solutions to data centers and wide area networks", stated Eyal Waldman, president and CEO of Mellanox Technologies. "The new and emerging Web 2.0 and cloud applications that influence our day-to-day lives depend on fast data movement and processing. Mellanox's interconnect provides the fastest and most-scalable solution for moving data within the data centre, allowing the continuous development, use and expansion of these applications. EZchip's processing solutions allow users to process and analyze, at wire speed, data both within and outside the data centre. The solutions from the combined company will enable data centre customers to meet the growing demands of data-intensive applications. We expect that the acquisition of EZchip's technologies and team will better position us to offer further capabilities for smarter interconnect and processing solutions at 100Gb/s and beyond. As our second significant acquisition in Israel, we are confident in our ability to effectively integrate the talented teams from EZchip and Mellanox. We are looking forward to work together to build a successful company."

"Joining forces with Mellanox represents numerous synergies that create a true powerhouse for connectivity and processing. With Mellanox's leading layer 1 - 3 connectivity solutions for data centres and EZchip's leading layer 3 - 7 processing solutions for carrier networks, the two companies complement each other in technology, products, markets served and customers. Together, we enable a multitude of layer 1 through 7 solutions for data centres and carriers", stated Eli Fruchter, CEO of EZchip. "I want to thank our shareholders and customers for their trust in us and our outstanding employees for building a winning company, a company that started fifteen years ago with many competitors and no customers, and became a market leader with leading-edge technology and products. We are delighted to join the Mellanox team and look forward to working together to drive the combined company’s further growth."

Mellanox and EZchip each believe that employees represent one of their most important assets. Mellanox looks forward to combining employees from both organisations. Mellanox intends to retain both companies' existing product lines, and will ensure continuity for customers and partners of both companies.

The combined businesses currently have approximately 2,400 employees, and have generated combined revenues of $668 million for the twelve months ended June 30, 2015.

The transaction is projected to close in the first quarter of 2016, subject to the completion of certain closing conditions. Mellanox expects the transaction to be non-GAAP accretive from day one.

Under the terms of the definitive agreement, EZchip shareholders will receive $25.5 for each ordinary share of EZchip that they hold at the closing of the transaction. Mellanox intends to fund the transaction with cash on hand from the combined companies and $300 million in fully-committed debt financing. The proposed acquisition is subject to customary closing conditions, including the receipt of applicable regulatory approvals and the approval of EZchip's shareholders.

In connection with the transaction, J.P. Morgan acted as exclusive financial adviser and provided a financing commitment to Mellanox and Herzog Fox & Neeman and Latham & Watkins LLP acted as Mellanox's legal counsel. Barclays acted as exclusive financial adviser to EZchip and Naschitz, Brandes, Amir & Co. and Carter Ledyard & Milburn LLP acted as EZchip's legal counsel.
Source: Mellanox

Back to Table of contents

Primeur weekly 2015-10-05

Special

Developing hardware for the exascale era in the DEEP and DEEP-ER projects ...

Exascale supercomputing

Is 3D-stacked memory the solution for HPC? ...

Quantum computing

Scientists produce status check on quantum teleportation ...

Focus on Europe

12th PRACE Call for Proposals for Project Access now open ...

ESiWACE and ESCAPE: integrating leading edge climate and weather simulations into HPC ...

Human Brain Project (HBP) pre-commercial procurement has entered its final phase ...

Imperial announces winner of competition to name supercomputer ...

NLeSC Integrator Barend Mons appointed Chair of European Commission's high level expert group ...

Middleware

IBM expands Watson platform for next generation of builders; extends industry's largest portfolio of cognitive APIs ...

Hardware

Large hyper data centres making use of Climaveneta high efficiency solutions ...

Dialog Semiconductor to acquire Atmel for $4.6 billion ...

IBM research breakthrough paves way for post-silicon future with carbon nanotube electronics ...

Mellanox Technologies announces definitive agreement to acquire EZchip ...

Kyoto University's Yukawa Institute for Theoretical Physics awards supercomputer contract to Cray ...

Applications

SDSC extends its "network" with Graph Analytics Training ...

NVIDIA designates University of Wyoming as GPU research centre ...

Spectacular new era in satellite meteorology unveiled ...

University of Maryland awarded $1 million from NIST for next-generation cryptography ...

NWSC Visitor Center designed to educate and inspire public about science ...

New supercomputer software takes us one giant step closer to simulating the human brain ...

Titan helps unpuzzle decades-old plutonium perplexities ...

Alexander Szalay named recipient of 2015 IEEE Computer Society Sidney Fernbach Award ...

The Cloud

SDSC upgrades Cloud computing and storage services ...

Cloud28+ community launches Unified European Cloud Catalogue ...