Israeli chip designer Mellanox Technologies Ltd has agreed to acquire network communications chip maker EZchip Semiconductor Ltd for $811 million as it expands its product portfolio for high-performance computing.The offer price of $25.50 per share represents a premium of 16 percent to EZchip's closing price on Tuesday.Mellanox said the acquisition pursues its strategy to become the leading global supplier of interconnect solutions for software-defined data centres. Mellanox, with a market value of $1.85 billion, makes InfiniBand products that enable databases, servers and computers to communicate. By buying EZchip, also based in Israel, the company adds Ethernet network processors to the list.
EZchip Semiconductor Ltd.is a fabless semiconductor company that provides data-path processing solutions for a range of applications for carrier, cloud and data center networks. Shares of EZCH traded higher by 14.393% or $3.165/share to $25.16. In the past year, the shares have traded as low as $14.30 and as high as $25.21. On average, 140365 shares of EZCH exchange hands on a given day and today's volume is recorded at 2515466.
Mellanox Technologies, Ltd. is a fabless semiconductor company. Shares of MLNX fell by 7.06% or $-2.81/share to $36.98. In the past year, the shares have traded as low as $32.24 and as high as $52.77. On average, 646161 shares of MLNX exchange hands on a given day and today's volume is recorded at 2705495.