Amazon Agrees to Buy Israel’s Annapurna Labs for AWS Cloud Unit

Amazon.com Inc. agreed to acquire Israeli semiconductor company Annapurna Labs, seeking to improve performance within its Amazon Web Services cloud unit.

A deal has been reached but hasn’t yet closed, said Mary Camarata, a spokeswoman at Amazon Web Services. She declined to comment on the terms. Acquisition talks were reported earlier by Israeli newspaper Calcalist, which said the purchase price could be as much as $370 million.

Annapurna Labs develops microprocessors that allow fast data traffic for power-efficient computing and storage servers, according to the newspaper. Annapurna’s website doesn’t explain what it does. Representatives for Annapurna didn’t immediately respond to requests for comment.

The chip developer is one of several that have sprouted in Israel over the past decade. Its owner, technology entrepreneur Avigdor Willenz, was the founder of Galileo Technology Ltd., which was sold to Marvell Technology Group Ltd. in 2001.

Seattle-based Amazon, the world’s largest online retailer, is constantly seeking to improve the cost and performance of the equipment in its data centers and has been hiring more semiconductor engineers to add to its capabilities, James Hamilton, a vice president of Amazon Web Services, said in a November interview. The unit rents out computing power on its servers to businesses for access through the Web.

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