Nvidia Closes $7 Billion Acquisition of Mellanox

A deal in which Nvidia CEO Jensen Huang has called a “homerun deal” has been completed this week by the company.

Nvidia has closed on its $7 billion acquisition of Mellanox, an Israeli-American multinational supplier of computer networking products based on InfiniBand and Ethernet technology.

“This is a homerun deal. Man, I’ve been dreaming about this,” Nvidia CEO Jensen Huang told CNBC on Monday of the gaming graphics manufacturer’s $7 billion acquisition of Mellanox Technologies.

“We’re combining the leaders of AI computing and high speed networking and data processing into one company and, so, this is really quite extraordinary,” he said in a “Mad Money” interview with Jim Cramer.

“With that, hopefully we could, you know, accelerate the innovation and create amazing things for data centers going forward,” he said.

The acquisition took over 13 months to complete since it was first announced in the first quarter of 2019.
China regulators approved the deal on April 16, months after authorities in the U.S. and the European Union gave the deal their blessing without conditions last year.

With the acquisition of Mellanox, Nvidia is looking boost its data center and artificial intelligence business.
Nvidia shares climbed more than 2% on the news on Monday.

Disclaimer: We have no position in NVIDIA Corporation (NASDAQ: NVDA) and have not been compensated for this article.