Nvidia outbids Intel to buy Israel’s Mellanox for $6.8bn
The deal will help the US chipmaker boost its data centre and supercomputer business
Tel Aviv — US chipmaker Nvidia will buy Israeli chip designer Mellanox Technologies for $6.8bn, beating rival Intel in a deal that would help the firm boost its data centre and supercomputer business. The all-cash offer of $125 per share represents a premium of 14% to Mellanox's closing price on Friday. Mellanox shares rose 8.4% to $118.56 and Nvidia shares gained 2.8% in early Nasdaq trading on Monday. The agreement, which the companies described as "definitive", follows a competitive bidding process which according to sources familiar with the matter, included rival chipmakers such as Intel. Xilinx was also part of the process, sources said. Mellanox will pay a $350m termination fee to Nvidia if it accepts a rival offer. Intel declined to comment on whether the company had bid for Mellanox, while Xilinx did not immediately respond to a request for comment. "The emergence of AI (artificial intelligence) and data science, as well as billions of simultaneous computer users, is fuelli...
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