Nvidia CEO: Mellanox acquisition a 'great milestone' for computer industry

The acquisition will not lead to any layoffs of company employees, said Nvidia CEO Jason Huang.

March 25, 2019 20:57
2 minute read.
Mellanox Technologies CEO Eyal Waldman (L) and Nvidia CEO Jason Huang

Mellanox Technologies CEO Eyal Waldman (L) and Nvidia CEO Jason Huang. (photo credit: OMER TAL)


Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analysis from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief


American technology giant Nvidia’s $6.9 billion acquisition of Israeli chipmaker Mellanox Technologies earlier this month is a “milestone for the company, and a great milestone for the computer industry,” according to founder and CEO of Nvidia Jensen Huang.

“Our intentions are that Mellanox is going to be a standalone entity here in Israel, and we will continue to grow it,” Huang, sitting alongside Mellanox founder and CEO Eyal Waldman, told reporters in Yokne’am on Monday.

“Every single one of Mellanox’s product lines, all of its businesses are coveted and treasured by us, and we will continue all of that. It is our intention and hope that Eyal [Waldman] will lead Mellanox Israel,” Huang added, emphasizing that the acquisition will not lead to any layoffs of company employees.

Mellanox, headquartered in Yokne’am, was founded in 1999 and is listed on the Nasdaq Stock Market. It supplies end-to-end interconnect solutions and networking services for many of the world’s largest data center servers and storage systems.

Nvidia’s purchase of the company, acquiring all issued and outstanding common shares for $125 per share in cash, brought to an end the months of reported takeover attempts by some of the world’s biggest hi-tech firms, including Intel, Microsoft and Xilinx.

While reluctant to enter into the details of negotiations between the companies and rival bids, Huang said the process “was supremely competitive, but we had the best final offer so we won this privilege of building this great company together with Mellanox.”

Expressing his pride in building Mellanox over two decades, exceeding $1 billion in annual revenue for the first time in 2018, Waldman added his belief that he has “found a great house” for Mellanox.

“It’s not going to be an independent company anymore but it’s going to be Mellanox within Nvidia, which I think is a great achievement,” said Waldman. “And I think we’ll find the right way to continue building this entity called Mellanox.”

The transaction, the third largest “exit” of an Israeli company to date, has been approved by the boards of directors of both companies and is expected to close by the end of the calendar year.

“We see the future of the combined company as very synergistic. We’ve been working for many years together and this is the climax of getting the teams, two technologies and strategies together,” said Waldman.

Since its establishment two decades ago, Mellanox has been dual-headquartered in Israel and in the United States. Today, it boasts operations from Israel’s South to the North, with offices in Yokne’am, Tel Aviv, Beersheba, Ra’anana and Tel Hai.

“Nvidia is 26 years old and we rarely make acquisitions, because generally we like to build, create new markets and develop new technologies for markets that have never been explored. We tend to build from scratch and tend to innovate from within,” said Huang.

“However, Mellanox is a one-of-a-kind treasure that is not possible to rebuild. That’s one of the reasons why we did something quite extraordinary for our company, to make such a large acquisition.”

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

A general view of Tel Aviv's skyline is seen through a hotel window in Tel Aviv, Israel May 15, 2017
April 18, 2019
Hi-tech companies raise $1.55 billion in first quarter of 2019