Deals
Nvidia to Buy Mellanox for $6.9 Billion in Data Center Push
- Mellanox holders offered $125-per-share in all-cash deal
- Graphics chipmaker trying to further embed itself in servers
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Nvidia Corp. agreed to buy chipmaker Mellanox Technologies Ltd. for $6.9 billion, gaining expertise to help it push into the growing market for data center components.
The $125-a-share cash offer for Mellanox is a 14 percent premium to Friday’s close of $109.38. But traders may not be sold on the idea that the deal will go through, with Mellanox trading up 8.6 percent to $118.62, still short of the bid from Santa Clara, California-based Nvidia. That gap may reflect concern that chip deals have foundered on regulatory approval delays and blocks amid a trade dispute between China and the U.S.