Mellanox Technologies Ltd. Announces Definitive Agreement to Acquire IPtronics A/S
High-speed analog transceiver technology completes optical
interconnect portfolio and enables next-generation, end-to-end 100Gb/s
SUNNYVALE, Calif. & YOKNEAM, Israel--(BUSINESS WIRE)--
Mellanox® Technologies, Ltd. (NASDAQ: MLNX; TASE: MLNX), a leading
supplier of end-to-end interconnect solutions for servers and storage
systems, announced its intent to acquire privately held IPtronics A/S, a
leader in optical interconnect component design for digital
communications. Mellanox and IPtronics have signed a definitive
agreement under which Mellanox will acquire IPtronics at a total cash
purchase price of approximately $47.5 million, subject to certain
adjustments. The terms of the transaction have been unanimously approved
by both the Mellanox and IPtronics Boards of Directors.
The transaction is currently projected to close in the second half of
2013, subject to the completion of certain closing conditions. Mellanox
currently expects the transaction to be accretive to its full fiscal
year 2014 earnings by approximately $0.01 to $0.03 per share on a
non-GAAP basis. IPtronics products are embedded in Mellanox's current
solutions. The IPtronics acquisition enhances Mellanox's ability to
deliver complete end-to-end optical interconnect solutions at 100Gb/s
and beyond. With IPtronics' high-speed transmitter and receiver devices,
Mellanox can offer the complete technology portfolio required to provide
cost-effective, high-speed networks and deliver next generation optical
connectivity, allowing data center customers to meet the growing demands
of applications used in high-performance, Web 2.0, cloud, data center,
database, financial services and storage environments.
Strategically focused on optical interconnects and active copper
interconnect solutions for the communications market, IPtronics offers
Multichannel Vertical Cavity Surface-Emitting Laser (VCSEL) Drivers,
Modulator Drivers (MD) and Transimpedance Amplifiers (TIA) with
significantly lower power consumption, richer feature sets and lower
costs compared to existing solutions in the market place today. The
technology Mellanox will acquire in connection with the transaction
bridges the gap between optical and electrical interfaces and enables
system providers to overcome the physical constraints of using
copper-based connections in high-speed interfaces and backplanes.
Mellanox expects the proposed acquisition of IPtronics to enhance its
competiveness and its position as a leading provider of
high-performance, end-to-end interconnect solutions for servers and
Mellanox expects to establish its first R&D center in Europe at
IPtronics' current location in Roskilde, Denmark, and further expand its
customer support presence within Europe. Further, Mellanox currently
intends to retain IPtronics' existing product lines to ensure continuity
for customers and partners.
"The proposed acquisition of IPtronics is highly complementary with our
recently proposed acquisition of Kotura. IPtronics' parallel optical
interconnect ICs further solidify our strategy to have a full end-to-end
solution for the server and storage interconnect," said Eyal Waldman,
president and CEO of Mellanox Technologies. "The new and emerging Web
2.0 and cloud applications that influence our day to day living depend
on fast manipulation of data, which is growing exponentially. Mellanox's
interconnect provides the fastest and most scalable solution for moving
data between server-to-server and server-to-storage, allowing the
continuous development, use and expansion of these applications. We
expect that the acquisition of IPtronics' technology and their
development team will better position us to continue to offer faster
interconnect solutions at 100Gb/s and beyond, with higher-density and
lower power at a lower cost. We welcome the talented team from IPtronics
and look forward to their contribution to Mellanox's continued growth."
"This acquisition is important for both companies because it enables
interconnect innovation for data centers that look for solutions that
move data faster and more efficiently," said Niels Finseth, co-founder
and CEO, of IPtronics A/S. "We are delighted to join the Mellanox team
and look forward to working together to drive the combined company's
The proposed acquisition is subject to customary closing conditions,
including the receipt of applicable regulatory approvals.
Mellanox and IPtronics will jointly conduct a conference call to discuss
Mellanox's agreement to acquire IPtronics at 5:30 a.m. Pacific Time on
June 4, 2013. To listen to the call, dial +1-785-424-1052 approximately
ten minutes prior to the start time. Presentation slides along with a
webcast of the live and archived call will be available on the investor
relations section of the Mellanox website at http://ir.mellanox.com.
About IPtronics A/S
IPtronics is a fabless semiconductor company offering next generation
integrated circuits for Parallel Optical Interconnects. Our silicon
enables low power, high density, high bandwidth and low cost modules
intended for the computer, storage and communications industry. The
company operates from its headquarters in Roskilde, Denmark and its US
operations, IPtronics, Inc. based in Menlo Park, CA.
Please visit www.IPtronics.com
for more information.
Mellanox Technologies is a leading supplier of end-to-end InfiniBand and
Ethernet interconnect solutions and services for servers and storage.
Mellanox interconnect solutions increase data center efficiency by
providing the highest throughput and lowest latency, delivering data
faster to applications and unlocking system performance capability.
Mellanox offers a choice of fast interconnect products: adapters,
switches, software, cables and silicon that accelerate application
runtime and maximize business results for a wide range of markets
including high performance computing, enterprise data centers, Web 2.0,
cloud, storage and financial services. More information is available at www.mellanox.com.
Safe Harbor Statement under the Private Securities Litigation Reform
Act of 1995:
This document contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934. These forward-looking statements
are based on our current expectations, estimates and projections about
our industry and business, management's beliefs and certain assumptions
made by us, all of which are subject to change.
Forward-looking statements can often be identified by words such as
"projects," "anticipates," "expects," "intends," "plans," "predicts,"
"believes," "seeks," "estimates," "may," "will," "should," "would,"
"could," "potential," "continue," "ongoing," similar expressions and
variations or negatives of these words. These forward-looking statements
are not guarantees of future results and are subject to risks,
uncertainties and assumptions that could cause our actual results to
differ materially and adversely from those expressed in any
The following factors, among others, could cause actual results to
differ materially from those described in the forward-looking
statements: the challenges and costs of closing, integrating,
restructuring and achieving anticipated annualized cost synergies; the
ability to retain key employees; the impact of the transaction discussed
herein on the Company's actual financial results; negative customer
reaction to the proposed acquisition; market adoption of the combined
company's solutions; the continued growth in demand for
high-performance, scientific, database, voice, video and cloud
applications; the continued growth in demand for our products; the
continued, increased demand for industry standards-based technology; our
ability to react to trends and challenges in our business and the
markets in which we operate; our ability to anticipate market needs or
develop new or enhanced products to meet those needs; the adoption rate
of our products; our ability to establish and maintain successful
relationships with our OEM partners; our ability to effectively compete
in our industry; fluctuations in demand; sales cycles and prices for our
products and services; our success converting design wins to
revenue-generating product shipments; and, our ability to protect our
intellectual property rights.
In addition, if IPtronics does not receive required regulatory approval
or if the parties fail to satisfy other conditions to closing, the
transaction may not be consummated and the anticipated benefits to
Mellanox of the proposed acquisition would not be realized. In any
forward-looking statement in which Mellanox expresses an expectation or
belief as to future results, such expectation or belief is expressed in
good faith and believed to have a reasonable basis, but there can be no
assurance that the statement or expectation or belief will result or be
achieved or accomplished.
Lastly and furthermore, current uncertainty in the global economic
environment poses a risk to the overall economy as businesses may defer
purchases in response to tighter credit conditions, changing overall
demand for our products, and negative financial news. Consequently, our
results could differ materially from our prior results due to these
general economic and market conditions, political events and other risks
and uncertainties described more fully in our documents filed with or
furnished to the SEC.
More information about the risks, uncertainties and assumptions that may
impact the transaction and the parties' businesses is set forth in
Mellanox's Form 10-K filed with the SEC on February 25, 2013 and Form
10-Q filed with the SEC on May 3, 2013, including "Risk Factors". All
forward-looking statements in this press release are based on
information available to us as of the date hereof, and we assume no
obligation to update these forward-looking statements to reflect actual
results, changes in assumptions or changes in other factors affecting
forward-looking information, except to the extent required by applicable
laws. If we update one or more forward-looking statements, no inference
should be drawn that we will make additional updates with respect to
those or other forward-looking statements.
Mellanox, ConnectX, Virtual Protocol Interconnect and Voltaire are
registered trademarks of Mellanox Technologies, Ltd. Connect-IB,
Mellanox Federal Systems, MetroX, MLNX-OS, are trademarks of Mellanox
Technologies, Ltd. All other trademarks are property of their respective
Mellanox Technologies, Ltd.
Ashley Paula, +1-415-547-7024
Gelbart Kahana Investor Relations
Source: Mellanox Technologies, Ltd.
News Provided by Acquire Media
Close window | Back to top