Welcome!

Recurring Revenue Authors: Yeshim Deniz, Zakia Bouachraoui, Elizabeth White, Pat Romanski, Xenia von Wedel

Related Topics: Containers Expo Blog, Microsoft Cloud, Eclipse, Recurring Revenue, @CloudExpo

Containers Expo Blog: Article

Cloud Expo Sponsor Mellanox Buys Voltaire for $218 Million

Less what Voltaire’s got in the bank, it’s going for $176 million

Oracle’s new best friend Mellanox Technologies said Monday that it’s buying sometime rival Voltaire for $8.75 a share, which works out to $218 million cash, roughly a 36% premium.

Less what Voltaire’s got in the bank, it’s going for $176 million.

Oracle recently bought 10.2% of Mellanox; it uses Mellanox’ InfiniBand widgetry in its servers, including its precious Exadata appliance.


Mellanox was one of the many exhibitors at 7th Cloud Expo in Silicon Valley in Nov 2010

Terms of that particular transaction weren’t announced. Oracle’s money will help Mellanex buy Voltaire. Oracle did say the investment was meant “solidify a common interest in the future of InfiniBand,” and until Voltaire branched out recently into 10 Gigabit Ethernet switches it was a pure InfiniBand play. Now Mellanox can use Voltaire as a springboard into Ethernet.

The deal should close in Q1 and create a 700-man combination worth at least $217 million a year, judging from what the two companies did in the 12 months ending September 30. Mellanox contributed $149.5 million to that number and Voltaire lost $4 million during that time, which may explain its motivation.

Mellanox, which makes adapters and InfiniBand chips as well as switches, said the acquisition would give it added scale and “permit it to operate as a larger, more successful and more profitable enterprise.”

“Together, we believe the combined company will be a stronger business partner and system solutions provider, delivering customers a comprehensive range of end-to-end connectivity solutions,” Mellanox CEO Eyal Waldman said in a statement.

Mellanox said it means to keep all product lines “to ensure continuity” for customers and converge them down the road in future generations obviously to save money. Voltaire uses Mellanox chips in its switches.

Mellanox spoke of running the combined companies under a unified management team and keeping the offices both companies have in Israel, the US and elsewhere.

Voltaire CEO Ronnie Kenneth is supposed to join the Mellanox board next May.

Mellanox figures Voltaire’s business, despite its losses, should add somewhere between two cents and a nickel (non-GAAP) if not more to its earnings in fiscal 2011. It also figures it should find cost synergies of $10 million a year by the end of 2012.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


IoT & Smart Cities Stories
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Charles Araujo is an industry analyst, internationally recognized authority on the Digital Enterprise and author of The Quantum Age of IT: Why Everything You Know About IT is About to Change. As Principal Analyst with Intellyx, he writes, speaks and advises organizations on how to navigate through this time of disruption. He is also the founder of The Institute for Digital Transformation and a sought after keynote speaker. He has been a regular contributor to both InformationWeek and CIO Insight...
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
Early Bird Registration Discount Expires on August 31, 2018 Conference Registration Link ▸ HERE. Pick from all 200 sessions in all 10 tracks, plus 22 Keynotes & General Sessions! Lunch is served two days. EXPIRES AUGUST 31, 2018. Ticket prices: ($1,295-Aug 31) ($1,495-Oct 31) ($1,995-Nov 12) ($2,500-Walk-in)
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
Nicolas Fierro is CEO of MIMIR Blockchain Solutions. He is a programmer, technologist, and operations dev who has worked with Ethereum and blockchain since 2014. His knowledge in blockchain dates to when he performed dev ops services to the Ethereum Foundation as one the privileged few developers to work with the original core team in Switzerland.
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...