Nvidia buys Israeli counterpart Mellanox for $ 6.9 billion

Mellanox Technologies is seen on one of its offices in the northern Israeli town of Yokneam October 9, 2013

The US chip maker Nvidia made the largest acquisition in its history with the acquisition of its Israeli counterpart Mellanox Technologies for more than seven billion dollars (6.2 billion euros). By taking control of Mellanox, Nvidia strengthens the field of data center chips and thus reduces its dependence on the video game industry, of which it is a leading supplier of graphics cards.

It also marks a victory for the Starboard Value Activist Fund, which reached an agreement with the company last year regarding the composition of its board of directors.Mellanox, a company based in Israel and the United States, designs adapters and switches for data centers. Its market capitalization is now about $ 5.9 billion (€ 5.2 billion) .Nvidia, headquartered in Santa Clara, California, has experienced rapid growth in recent years, but Group sales have slowed over the past few quarters due in part to weak demand for gaming chips in China.

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Mellanox Technologies is seen on one of its offices in the northern Israeli town of Yokneam October 9, 2013

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