The American chip manufacturer Nvidia announced that it was going to buy its Israeli counterpart, Mellanox Technologies, for the sum of 6.7 billion dollars. So Nvidia will reinforce its position in the data centre chip sector. There was another leader in the sector in the race to buy Mellanox, the Intel group.
Nvidia’s offer was more enticing than Intel’s, estimated to be “only” 6 billion and that of Xilinx at 5.5 billion dollars. So before the end of 2019, Mellanox Technologies will be an American owned company.
This is just another example of how Israel has become a “Start up” nation, which is building up its number of Exits, start ups that grow and attract the interest of the largest groups in the world and are sold for millions or even billions of dollars.
A 6.7 billion Exit for the Israeli Mellanox Technologies
By taking over the Israeli chip group Mellanox Technologies, the huge Nvidia company has made the largest acquisition in its history. It will spend a little less than 7 billion dollars to buy its counterpart in the Holy Land. Founded 25 years ago, Nvidia is making its largest sale by buying the provider of solutions and components for data centres. The American regulatory authorities need to give the green light so that the transaction can take place between now and the end of 2019.
Nvidia knows Mellanox Technologies well as they have collaborated in the past. Nvidia and Mellanox Technologies have worked together on the two largest super calculators in the world, Sierra and Summit. IBM made them with the participation of the American and Israeli groups and the American Department of Energy used these supercalculators.
It must be said that thanks to this huge sale, the Jewish State will receive 948 million shekels. Eyal Waldman, the group’s founder, will receive 905 million shekels, a good amount for the fifty year old, who can enjoy a well deserved retirement.
Israel is an Exit Start Up Nation
The take over of the Mellanox Technologies group for billions of dollars by a foreign company is just one example among many. In 2017, Intel bought the Israeli group Mobileye for 15 billion dollars. Likewise, the Israeli NeuroDerm was bought by the Japanese pharmaceutical group Mitsubishi Tanabe Pharma for 1.1 billion dollars.
The most well known remains the Israeli Waze which was sold for 1.15 billion dollars to the Google group. The communal navigation app Waze is the most frequently used free SatNav in the world and the Exit was widely reported. We must also mention that Argus Cyber Activity was sold to Continental for 400 million dollars.
The Israeli Start Up Nation will continue to surprise and has a bright future ahead.
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