NVIDIA acquires Mellanox to enhance data center computing technologies
Category: #business |   By Saipriya Iyer |   Date: 2020-04-28

NVIDIA acquires Mellanox to enhance data center computing technologies

Next-gen data centers are gaining prominence with the rapid increase in edge computing requirements, in response to the development of innovative technologies like artificial intelligence, IoT, and many others. Software and hardware providers are now competing to cater to a larger number of data center customers who require advanced computing technologies.

Leading GPU and computing technology provider NVIDIA has recently confirmed that it has acquired Mellanox Technologies, Ltd, an Israeli-American supplier of computer networking products. The deal was made at a transaction valued at $7 billion, becoming the biggest acquisition for NVIDIA.

The deal was first announced in March 2019, which has now combined two of the most prominent names in high performance and data center computing. With NVIDIA’s well-established leadership in computing and the high-performance networking tech from Mellanox, the companies will now be able to serve customers who wish to achieve improved performance, lower operational costs and benefit from greater use of computing resources.

For NVIDIA, the acquisition is projected to be accretive immediately to its non-GAAP gross margin, non-GAAP EPS and free cash flow, while being inclusive of the incremental interest expense associated with the company’s recently issued $5 billion worth notes.

Also Read:  Tencent START cloud gaming platform to be boosted by NVIDIA’s GPU

According to NVIDIA CEO and founder, Jensen Huang, after acquiring Mellanox the new NVIDIA will have end-to-end tech offerings, from AI-powered computing to networking, full-stack portfolio from processors to software, as well as substantial scale for advancing next-gen data centers.

By combining the expertise of both the companies, supplemented with a strong partner ecosystem, NVIDIA can meet the challenges related to the global demand for consumer internet services, and the application of artificial intelligence and data science across cloud to edge to robotics, Huang added.

Founder and CEO of Mellanox, Eyal Waldman stated that the deal represents a strong, complementary combination of technology, culture and ambitions. Mellanox will keep offering cutting-edge solutions and novel products to customers and partners through this next part of its journey with NVIDIA.

He noted that the company will bring NVIDIA’s products and solutions to its markets while brining the products and solutions of Mellanox to the markets of NVIDIA, providing world leading solutions for computing and storage platforms as and when required by customers.

 

Source Credits: https://nvidianews.nvidia.com/news/nvidia-completes-acquisition-of-mellanox-creating-major-force-driving-next-gen-data-centers

  • shareShare
  • Twitter
  • Facebook
  • LinkedIn


About Author

Saipriya Iyer     Twitter

Saipriya Iyer

A content developer by choice, Saipriya Iyer holds a rich experience portfolio of more than five years in the content creation domain. Equipped with substantial expertise across the business, technology, and finance domains, Saipriya currently pens down insightful art Read more...

More News By Saipriya Iyer

Infosys to open office in Calgary, aims to hire 1000 people by 2024

Infosys to open office in Calgary, aims to hire 1000 people by 2024

By Saipriya Iyer

Tech giant Infosys, which has operations in 50 countries, will set up its digital center in Gulf Canada Square. Over the next two years, Infosys aims to create 1,000 new jobs in Calgary by 2024, according to reliable reports. This was almost doubl...

Government-led initiatives can address Africa's food insecurity, claims report

Government-led initiatives can address Africa's food insecurity, claims report

By Saipriya Iyer

A new report released recently in the Rwandan capital of Kigali has urged African governments to take the lead and coordinate internal and external initiatives to address the continent’s food insecurity swiftly and comprehensively. The Allia...

Iron Pillar seeking USD 400 million to empower tech startups in India

Iron Pillar seeking USD 400 million to empower tech startups in India

By Saipriya Iyer

An investment company that is known to back tech startups, Iron Pillar, is reportedly looking to raise around USD 400 million to help boost the startup ecosystem in India. The venture capital firm is already in advanced deliberations with limited par...