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Mergers and Acquistions News

Categories: Hardware

November 30th 2010, 17:02PM

Israel-based Mellanox, a maker of connectivity switches and gateways, has announced it will acquire Voltaire, a rival data centre fabrics firm with headquarters in Israel and the US, for approximately $218 million (£140 million).

Mellanox will buy 100 per cent of Voltaire's outstanding ordinary shares for $8.75 per share.

The firm said in a statement its acquisition will strengthen its position in the data centre, server and storage markets.

According to analyst firm Gartner, global server shipments are forecast to increase from approximately 9 million this year to 11.2 million by 2014.

On completion of the deal, expected in the first quarter of 2011 and subject to customary closing conditions, the combined company will have 700 employees and will have achieved revenues of $217 million for the 12 months up to the end of September 2010.

"The combination of Mellanox and Voltaire will create a leading provider of connectivity solutions for our customers by leveraging the complementary strengths of our companies," Eyal Waldman, president, chairman and chief executive officer of Mellanox, said.

Last month (October 27th), Oracle, a business software and hardware systems firm, acquired 10.2 per cent of Mellanox's ordinary shares in what it called a "strategic investment".ADNFCR-1833-ID-800263845-ADNFCR

 

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