Data center News
Data Center Acquisitions: Xilinx Eying Mellanox For $5.5 Billion
Shares of Mellanox Technologies jumped nearly 7 percent following reports that the $5 billion data center hardware maker is being pursued by Xilinx for acquisition.
Mellanox, which received a five-star rating in CRN's 2018 Partner Program Guide, is set to be acquired for a value of $5.5 billion from fellow data center manufacturer and semiconductor specialist Xilinx, according to a CNBC report citing people familiar with the matter. The sources said the purchase price could top $100 per share which values the Mellanox deal at $5.5 billion.
San Jose, Calif.-based Xilinx has hired Barclays to advise on the bid to acquire Israel-based Mellanox, CNBC reported. Mellanox is scheduled to present at the Barclays Global Technology, Media and Telecommunications conference next month.
Mellanox and Xilinx did not respond to comment by press time.
Mellanox provides a slew of data center products from Ethernet switches, chips and InfiniBand intelligent interconnect solutions to servers, storage and hyper-converged infrastructure. The company currently has a market cap of approximately $5 billion with shares trading at $92.99 as of Thursday afternoon.
In June, Mellanox appointed three new board members in a settlement with activist investment firm Starboard Value after the hedge fund, who owns a 10.5 percent stake in Mellanox, said it planned to oust all sitting directors.
Xilinx specializes in manufacturing data center products such as field-programmable gate array chips. By adding Mellanox's broad portfolio, Xilinx would greatly increase its data center offerings and technology partnerships.
Xilinx has a market cap of nearly $22 billion with shares steadily rising over the past month to $86.92 as of Thursday afternoon.