$811 Million Internal Exit in Startup Village - Mellanox Acquires EZChip

Mellanox Technologies cash purchase of EZchip shares at $25.5 per share gives it technological leadership in all 7 communication layers by adding EZchip’s leading layer 3 – 7 processing solutions to Mellanox's layer 1 - 3 InfiniBand, which is a high speed, low latency networking technology widely used in High Performance Computing (HPC).

In an interview after a press conference in Tel Aviv on Thursday, Mellanox CEO, Eyal Waldman was quoted by Gwen Ackerman of Bloomberg Business as saying that they "thought of doing system-on-a-chip some time ago but didn’t have enough organic resources to do the device.” and that the “merger will enable us to bring the processing ability from EZchip and our networking capability to a system-on-a-chip device.”

In ComputerDynamics Oct. 5 report, Max Smolaks quoted EXChip CEO, Eli Fruchter, as saying that "the two companies complement each other in technology, products, markets served and customers”. According to the Oct. 7 report in Israel 21c, "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."