This deal, which will be completed in the beginning of 2016, will see the companies merge as one, keeping all 2,400 employees in Yokneam, Israel, where both businesses are based.
As part of the transaction, Mellanox will acquire all of EZchip’s outstanding ordinary shares for $25.50 per share in cash, a net of cash of about $620 million, the companies said. This is a 16% premium on the company’s share price.The terms of the transaction have been unanimously approved by both the Mellanox and EZchip Boards of Directors. Zacks raised shares of EZchip Semiconductor from a “hold” rating to a “strong-buy” rating and set a $25.00 price objective for the company in a research report on Monday, August 17th. Its multi-core processors enable customers to design systems which are high performance, as well as power efficient. In the first quarter of 2015, Cisco was in charge of 35% of EZchip’s income – about $9.5 million so that Cisco’s choice will have a noteworthy effect on future income.
Mellanox president and CEO Eyal Waldman said, “The synergies between EZchip and Mellanox create attractive opportunities”. EZchip’s broad portfolio of solutions scales from a few to hundreds of Gigabits-per-second, and includes network processors, multi-core processors, intelligent network adapters, high-performance appliances and a comprehensive software ecosystem. “The new and emerging Web 2.0 and cloud applications that influence our day-to-day lives depend on fast data movement and processing”.
EZchip Semiconductor Ltd.is a fabless semiconductor company providing you with data-path processing solutions for a variety of programs for carrier, cloud and data center networks.
Throughout the following couple of years the consolidated company will sell items that are not commonly aggressive to customers in the data stockpiling market, which is required to experience accelerated development as distributed computing, huge data and the internet of things quickly grow, Calcalist said. “We are looking forward to work together to build a successful company”.
Mellanox, with a market value of $1.85 billion, makes InfiniBand products that allows databases, servers and computers to talk with one another.