- Back in 2019, Nvidia Corporation, a technology multinational based out of California, initiated the most significant acquisition in the history of the company with plans to take over Mellanox.
- The deal initiated in 2019 was officially inked in late April 2020.
- The total amount of the deal was approximately USD 7 billion.
- Post the acquisition, Nvidia has formally renamed Mellanox Technologies to Nvidia Networking.
“Mellanox Technology is now Nvidia Networking.” This is a banner that notifies and redirects every Mellanox visitor to Nvidia Networking.
Mellanox Technologies is one of the most significant acquisitions in the history of Nvidia Networking. It is one of the several big decisions taken by the company in recent years. The deal has worked positively and adds to Nvidia’s continued growth graph and performance on the stock market.
Rebranding Mellanox Technologies as NVIDIA Networking makes perfect sense following the acquisition. Now we’ll just have to wait and see how this impacts Nvidia’s future earnings reports.
In terms of Mellanox, the acquirement strengthens Nvidia’s business in the genre of cloud computing, networking, and data centers.
Mellanox focuses on the spectrum of cloud computing, data centers, and networking. These are areas that Nvidia has been paying strong attention to for years.
The union between the two tech entities would lead to “higher performance, greater utilisation of computing resources and lower operating costs.”
Nvidia Networking, formerly known as Mellanox, will add to its capabilities by reducing Nvidia’s operating costs in key businesses and will lead to enhance performance and make optimal use of computing resources.
At this point in time, there is no information if products such as Mellanox ConnectX 5 developed and released under Mellanox will be renamed, or the parent company will continue with the name for product branding.
With this significant acquisition, Nvidia Networking continues to get bigger and better in the networking arena, which works as a key player of the High-Performance Computing cluster. Nvidia has powerful GPUs (Graphics Processing Units) and a state-of-the-art networking unit, which makes it a key player in the market.
The road ahead
Nvidia might have plans for some major acquisition for later this year; rumors also indicate that the tech giant might acquire ARM from the Japanese firm, SoftBank.