Infiniband developer Mellanox Technologies Ltd. (Nasdaq:MLNX) and chipmaker EZchip Semiconductor Ltd. (Nasdaq: EZCH; TASE:EZCH), 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.
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Both companies are based near Haifa in Israel.
has undergone a major shakeup this year after ing
EZchip in May announced that its largest customer Cisco Systems would develop its own chip processors rather than using the new generation of EZchip processors. In the first quarter of 2015, Cisco was responsible for 35 percent (a $9.5 million) of EZchip’s revenue.
Mellanox develops and provides big data interconnect solutions including chips, cards, communications switches and cables for transferring information swiftly in organizations. The company reported GAAP net profit of $19.2 million compared with a net loss of $8.9 million in the corresponding quarter of 2014.
