Nvidia is buying Mellanox Technologies in a $6.9 billion deal

Nvidia has agreed to buy the chipmaker Mellanox Technologies in a $US6.9 billion all-cash deal that will help it expand into the market for data-center components.

The deal, which is the largest in Nvidia’s history, will pay Mellanox shareholders $US125 a share-a 14.3% premium to Friday’s closing price.

“We’re excited to unite NVIDIA’s accelerated computing platform with Mellanox’s world-renowned accelerated networking platform under one roof to create next-generation datacenter-scale computing solutions,” Nvidia founder and CEO Jensen Huang said in the press release.

Nvidia beat out rival Intel in the race for Mellanox, according to the financial newsite Calcalist.

Goldman Sachs was the financial advisor to Nvidia while Credit Suisse and JPMorgan were the financial advisors for Mellanox.

This story is developing…Check back for updates.

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