NVIDIA Pips Intel in Mellanox Technologies Acquisition Deal

The chip maker, a late entrant in the bidding race, has displaced Intel as the top bidder for Israeli company Mellanox

For years NVIDIA have made their name as the best in the world in creating hardware for running heavy duty video games. In recent times, they have voiced their intentions to extend their dominance into the computing industry. This may have possibly fueled their aggressive attempts at trying to acquire Israeli computer network products company, Mellanox Technologies. NVIDIA have emerged as the highest bidders for the company, overtaking tech giants Intel in the process.

Mellanox is known worldwide for their high performance computing products. Acquiring such a company could help NVIDIA broaden the range of products they currently offer, prompting the chip maker to adopt a no-holds-barred approach when it comes to the bidding war. While the exact bid amount has not been disclosed as of now, reports suggest NVIDIA is offering US$ 7 billion in exchange for the company. A few months earlier, Intel had announced a US$ 6 billion for the Israeli company, and were touted as the eventual winning bidders, before NVIDIA entered the race.

If NVIDIA manages to procure the deal, it will be the biggest acquisition they have ever made, and will give them a significant boost in manufacturing chips for data centers and other computing facilities, and in the process, possibly decrease their over reliance on the video game industry.

Both companies are adopting a secretive outlook about the deal as there has been no comment from NVIDIA or Mellanox, regarding the deal. However it has been reported that the deal could go through as early as March 11, 2019, given that NVIDIA faces no further roadblocks or competition. The deal will augur well for NVIDIA who faced a fourth quarter revenue decline of almost a half a billion dollars, owing to a declining demand of their chips in Asian countries.