Mellanox Completes Acquisition of EZchip
SUNNYVALE, Calif. & YOKNEAM, Israel, Feb. 23 -- Mellanox Technologies, Ltd. (NASDAQ: MLNX), a leading supplier of end-to-end interconnect solutions for servers and storage systems, today announced that it completed the acquisition of EZchip (NASDAQ: EZCH; TASE: EZCH), a leader in high-performance processing solutions for carrier and data center networks, at a total purchase price of approximately $811 million (approximately $606 million net of cash).
Effective today, each outstanding share of EZchip ordinary shares shall be deemed to have been transferred to Mellanox, entitling the holder thereof to receive $25.50 in cash without interest and less any applicable withholding taxes. Following the merger, EZchip shares ceased to be traded on the NASDAQ and Tel-Aviv Stock Exchanges.
The EZchip acquisition is a further step in Mellanox’s strategy to become the leading broad-line supplier of intelligent interconnect solutions for the data center. The combined company will deliver diverse and robust solutions, enabling customers to meet growing demands of data-intensive applications used in high-performance computing, Web 2.0, cloud, network security, data center, enterprise, telecom, database, financial services and storage environments.
“As our largest ever acquisition, we are confident the integrated teams of EZchip and Mellanox can deliver future value to our shareholders,” said Eyal Waldman, President and CEO of Mellanox. “We look forward to working together as a combined company building a leading intelligent, end-to-end interconnect, and network processing company. This will enable Mellanox to add intelligence, and application offloads to the interconnect, which is a trend we are seeing in data centers, and expect to take dominant share in this transition.”
In connection with the transaction, J.P. Morgan Securities LLC acted as exclusive financial adviser, and provided a financing commitment to Mellanox, and Herzog Fox & Neeman and Latham & Watkins LLP acted as Mellanox’s legal counsel.
Updated First Quarter 2016 Guidance (Including 5-weeks of EZchip contribution)
We currently project:
- Quarterly revenues of $190 million to $195 million
- Non-GAAP gross margins of 71 percent to 72 percent
- An increase in non-GAAP operating expenses of 8 percent to 10 percent
- Share-based compensation expense of $13.8 million to $14.3 million
- Non-GAAP diluted share count of 48.7 million to 49.2 million shares.
Conference Call
Mellanox will conduct a conference call at 8:00 a.m. Eastern Time, Tuesday, February 23, 2016. To listen to the call, participants can dial +1-888-632-3384 approximately ten minutes prior to the start time. A webcast of the live and archived call will be available on the investor relations section of the Mellanox website at http://ir.mellanox.com.
About Mellanox
Mellanox Technologies is a leading supplier of end-to-end InfiniBand and Ethernet intelligent interconnect solutions and services for servers and storage. Mellanox intelligent interconnect and processing solutions increase data center efficiency by providing the highest throughput and lowest latency, delivering data faster to applications and unlocking system performance capability. Mellanox offers a choice of fast interconnect products: adapters, switches, software, cables and silicon that accelerate application runtime and maximize business results for a wide range of markets including high-performance computing, enterprise data centers, Web 2.0, cloud, storage, telecom and financial services. More information is available at www.mellanox.com.
---
Source: Mellanox Technologies
