Mellanox, a global supplier of InfiniBand and Ethernet interconnect solutions and services for servers and storage, maintains five offices in Israel. EZchip is a fabless semiconductor company that provides processing solutions for carrier, cloud and data center networks.
This is the company’s second significant acquisition in Israel; in 2011, Mellanox acquired Voltaire or Ra’anana for $208 million. In 2014, it acquired Integrity Project in Ramat Gan.
According to a Mellanox statement, EZchip’s products and expertise in security, deep packet inspection, video and storage processing will help further Mellanox’s strategy to become the leading broad-line supplier of intelligent interconnect solutions for software-defined data centers.
“The synergies between EZchip and Mellanox create attractive opportunities,” said Eyal Waldman, president and CEO of Mellanox Technologies. “EZchip’s processing solutions allow users to process and analyze, at wire speed, data both within and outside the data center. The solutions from the combined company will enable data center customers to meet the growing demands of data-intensive applications.”
Eli Fruchter, CEO of EZchip, said joining forces with Mellanox creates “a true powerhouse for connectivity and processing.” He noted that the company started in 1999 with many competitors and no customers.
Mellanox will combine employees from both organizations and retain both companies’ existing product lines. The combined businesses currently have approximately 2,400 employees, and have generated combined revenues of $668 million for the 12 months ended June 30, 2015.