Reference no: EM132929641
Nvidia completes acquisition of Mellanox on April 2020
NVIDIA today announced the completion of its acquisition of Mellanox Technologies, Ltd., for a transaction value of U.S.$7 billion. Nvidia Corporation is an American multinational technology company incorporated in Delware and based in Santa Clara, California. Mellanox Technologies Ltd. is an Israeli multinational supplier of computer networking products based on InfiniBand and Ethernet technology. Mellanox CEO is Eyal Waldman, an Israeli executive who found the company in the Israeli city of Yokne'am in March 1999.
The acquisition, initially announced on March 11, 2019, unites two of the world's leading companies in high performance and data centre computing. Combining NVIDIA's leading computing expertise with Mellanox's high-performance networking technology, the move will enable customers to achieve higher performance, greater utilization of computing resources and lower operating costs.
"The expanding use of AI and data science is reshaping computing and data centre architectures," said Jensen Huang, founder and CEO of NVIDIA. "With Mellanox, the new NVIDIA has end-toend technologies from AI computing to networking, full-stack offerings from processors to software, and significant scale to advance next-generation data centres. Our combined expertise, supported by a rich ecosystem of partners, will meet the challenge of surging global demand for consumer internet services, and the application of AI and accelerated data science from cloud to Eyal Waldman said "This is a powerful, complementary combination of cultures, technology and ambitions. Our people are enormously enthusiastic about the many opportunities ahead. As Mellanox steps into the next exciting phase of its journey, we will continue to offer cutting-edge solutions and innovative products to our customers and partners. We look forward to bringing NVIDIA products and solutions to our markets, and to bringing Mellanox products and solutions into NVIDIA's markets. Together, our technologies will provide leading solutions into compute and storage platforms wherever they are required."
The acquisition is expected to be immediately accretive to NVIDIA's non-GAAP (Generally Accepted Accounting Principles) gross margin, non-GAAP EPS (Earning Per Share) and free cash flow, inclusive of incremental interest expense related to NVIDIA's recent issuance of $5 billion of notes.
Q1. Cross-border Merger & Acquisition (M&A) processes have four phases. At different stages, there should be corresponding HR practices. According to the case, Nvidia and Mellanox have completed the first two phases and are moving to phase three and four, which will have more HR involvement. Assuming both companies would like to have a high level of integration to gain competitive advantages, as an IHRM practitioner, suggest relevant HR activities in the last two phases to facilitate a smooth transition.