Mellanox Technologies has announced that its proposed merger with EZchip received the necessary votes of approval from shareholders, and that the deal worth a reported $811 million is now a ‘go.’ Mellanox expects to complete the acquisition of the fabless semiconductor provider of high-performance processing solutions during the second half of February 2016.
“With the receipt of the necessary shareholder approval, we are pleased to be another step closer to completing the acquisition of EZchip,” said Eyal Waldman, President and CEO of Mellanox. “This acquisition will enhance our scale and profitability by broadening the Mellanox product portfolio, add critical embedded processing intellectual property and know-how to our capabilities and significantly expand our market reach and customer relationships.
“With the combination of our teams, technologies and products, Mellanox and EZchip together will be in an excellent positon to capitalize on the substantial opportunity for Intelligent Networking, and deliver significant benefits to shareholders, data center customers and employees of the combined company.”
EZChip, a leader in high-performance processing solutions for carrier and data center networks, said approximately 84 percent of votes cast at its 2016 Extraordinary General Meeting were in favor of the merger.
“We are pleased by the support this transaction has received from our shareholders. We look forward to working with Mellanox to close the transaction for the benefit of all our stakeholders, including our dedicated employees, customers and partners,” said Eli Fruchter, CEO of EZchip.
EZchip and Mellanox entered into an agreement on September 30, 2015, providing for Mellanox to acquire EZchip but some shareholders contested the deal.
Following completion of the transaction, Mellanox intends to integrate employees from both organizations and retain both companies’ existing product lines to ensure continuity for customers and partners of both companies.