Mellanox to buy Voltaire for $218 million

Mellanox Technologies has announced that it is to acquire data centre fabric manufacturer Voltaire for approximately $218 million.

The all-cash deal will see Mellanox pay $8.75 per share in Voltaire, which Mellanox believes will strengthen its position in the server and supercomputer sectors.

Mellanox was founded in 1999 and makes connection devices for servers and supercomputers, including the InfiniBand adaptors for China’s first petaflop supercomputer in May of this year. It claims to be the company of choice for server and supercomputer connectivity, particularly for the Fortune 500 firms.

Voltaire was founded in 1997 and is also big in the server and supercomputer game, making computing fabric for data centres, supercomputers, and cloud systems. It supplies more than 30 percent of the Fortune 100 companies and many of the Top 500 supercomputers, making it a perfect match for Mellanox.

As part of the acquisition, Voltaire’s CEO, Ronnie Kenneth, is expected to join Mellanox’s Board of Directors in 2011, subject to approval at the next Mellanox meeting.

With both companies combined Mellanox will have roughly 700 employees and a revenue base of $217 million for the year ending September 30. Mellanox also expects a cost synergy of at least $10 million by 2012.

The deal was approved unanimously by Voltaire’s Board of Directors and is expected to close within the first quarter of 2011.