Cloud // Cloud Storage
News
11/29/2010
02:21 PM
Connect Directly
RSS
E-Mail
50%
50%

Mellanox To Acquire Voltaire For $218 Million

The firms will converge their data center connectivity products for linking servers, storage solutions, fabric switches, and related software.

Mellanox Technologies announced Monday that it will acquire Voltaire for $218 million in a move that brings together two connectivity heavyweights serving data center servers and cloud computing IT enterprise environments.

The deal had immediate repercussions on the firms' stocks, as Voltaire's jumped nearly 35% and Mellanox's dipped 4% in early trading following the announcement.

The two firms provide a variety of data center connectivity solutions in linking servers, storage solutions, fabric switches, and related software. Both firms have major offices in the United States and Israel. Mellanox said it plans to operate the combined businesses from current offices in Israel and the United States.

"The combination of Mellanox and Voltaire will create a leading provider of connectivity solutions for our customers by leveraging the complementary strengths of our companies," said Eyal Waldman, president, chairman, and CEO of Mellanox, in a statement. "Together, we believe the combined company will be a stronger business partner and system solutions provider, delivering customers a comprehensive range of end-to-end connectivity solutions."

Mellanox said the directors of both companies have approved the acquisition, which is expected to become final in the first quarter of 2011 after reviews by regulatory agencies.

Mellanox said it expects to retain the existing product lines of both firms and to converge the lines in future product generations. Mellanox recorded nearly $150 million in revenue, and Voltaire $67.7 million in revenue, over the last 12 months (LTM). Both firms have produced InfiniBand offerings and they both share a lineup consisting of major Fortune 100 firms. Between them, Mellanox and Voltaire have about 700 employees.

Voltaire CEO Ronnie Kenneth is slated to join Mellanox's board of directors. Long a pacesetter in Infiniband, Voltaire has recently stepped up its Ethernet presence in situations in which it believes it will buttress Mellanox's longtime strength in server and storage connectivity.

For Further Reading

Mellanox Unveils Advanced Adapter Cards For Dell Blades

Interop: 10 Gigabit Ethernet Advances Into Data Centers

Voltaire Intros 40 Gigabit Switch

Comment  | 
Print  | 
More Insights
Google in the Enterprise Survey
Google in the Enterprise Survey
There's no doubt Google has made headway into businesses: Just 28 percent discourage or ban use of its productivity ­products, and 69 percent cite Google Apps' good or excellent ­mobility. But progress could still stall: 59 percent of nonusers ­distrust the security of Google's cloud. Its data privacy is an open question, and 37 percent worry about integration.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Must Reads Oct. 21, 2014
InformationWeek's new Must Reads is a compendium of our best recent coverage of digital strategy. Learn why you should learn to embrace DevOps, how to avoid roadblocks for digital projects, what the five steps to API management are, and more.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
A roundup of the top stories and trends on InformationWeek.com
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.