It took longer than expected, but Nvidia (NVDA)
announced on Thursday (April 16, 2020) that it finally secured Chinese
government approval to proceed with its acquisition of high-speed
interconnect specialist Mellanox (MLNX).
With that, Nvidia believes they can close the deal in about 10 days
(April 27), bringing the company the acknowledged leader in high-speed
interconnect for data centers.
From the perspective
of someone who has followed Mellanox over the years, I find this a
bittersweet development. The $125 per share in cash is arguably nice to
have, particularly given the current uncertainties in the market, but as
I wrote in other articles, I believe Mellanox could likely have
surpassed that value on their own had the deal broken up. Now, though,
investors will need to redeploy that cash into other ideas.
Read the full article here:
Nvidia Clears The Last Major Hurdle In The Mellanox Deal
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